stock option

noun

1
: an option contract involving stock
2
: a right granted by a corporation to officers or employees as a form of compensation that allows purchase of corporate stock at a fixed price usually within a specified period

Examples of stock option in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Pay package could be worth $1 trillion Last week, Tesla proposed a new pay package for Musk that could grant him additional stock options that could be worth $1 trillion should Tesla achieve certain sales and valuation milestones. Chris Isidore, CNN Money, 15 Sep. 2025 The Boston Sports Journal and The Athletic later reported that Aspiration gave Leonard an additional $20 million in stock from company co-founder Joe Sanberg’s personal stock options. Joe Vardon, New York Times, 11 Sep. 2025 The closing price values the company at over $17 billion based on its outstanding shares, with stock options and warrants adding slightly to that figure. Jeremy Kahn, Fortune, 11 Sep. 2025 The stock options sold came from 2020 performance rewards as well as stock accrued between 2011 and 2024. Jackie Charniga, USA Today, 7 Sep. 2025 See All Example Sentences for stock option

Word History

First Known Use

1877, in the meaning defined at sense 1

Time Traveler
The first known use of stock option was in 1877

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Cite this Entry

“Stock option.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stock%20option. Accessed 18 Sep. 2025.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

Last Updated: - Updated example sentences
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