stock option


Definition of stock option

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 More than half that compensation came from stock option gains made by 22 CEOs on the list. Patrick Kennedy, Star Tribune, 17 July 2021 Given her limited time on staff, though, Santori received a humble four-figure stock option. Lauren Smiley, Wired, 22 June 2021 The award, called a profits interest, is similar to a stock option and gives Mr. Neumann gains above a certain minimum share price. Eliot Brown, WSJ, 27 May 2021 The employees receive 100% of the funding for their stock option package and the taxes needed to be paid, and in return the investors and employees share the future gains upon a liquidity event. Gary Drenik, Forbes, 13 May 2021 Argent provides individuals, families, businesses and institutions a range of wealth management services, including trust and estate planning, investment management, employee stock option plans and retirement-plan consulting. Patrick Danner, San Antonio Express-News, 3 May 2021 What kind of stock option or equity incentive plan does the company have? Allbusiness, Forbes, 26 Apr. 2021 Read your stock option plan’s rules carefully, and consider seeking professional financial advice. Dallas News, 18 Apr. 2021 Kodak said the stock option grants were approved by shareholders in May and issued July 27 to preserve the value Continenza had already earned before the dilution triggered by the conversion of old debt. CBS News, 5 Aug. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'stock option.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of stock option

1877, in the meaning defined at sense 1

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Time Traveler for stock option

Time Traveler

The first known use of stock option was in 1877

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Statistics for stock option

Last Updated

23 Jul 2021

Cite this Entry

“Stock option.” Dictionary, Merriam-Webster, Accessed 25 Jul. 2021.

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More Definitions for stock option

stock option


English Language Learners Definition of stock option

US : a right that is given by a company to an employee that lets the employee purchase stock in the company usually for a price that is lower than the normal price

stock option

Legal Definition of stock option

— see option sense 3

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