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.
So take time to review the terms and maybe, even negotiate items like severance, health insurance, stock options, or placement services to get another job. Medora Lee, USA Today, 31 Oct. 2025 The purpose of the stock split is to reset the market price of the company’s common stock to a range that will be more accessible to employees who participate in its stock option program. Jill Goldsmith, Deadline, 30 Oct. 2025 The strategists argue that while broader hedges like index puts can be expensive, single-stock options on companies with limited fundamental support can offer a more targeted and cost-efficient way to protect portfolios in a downturn. Yun Li, CNBC, 22 Oct. 2025 However, the deal’s exact structure isn’t clear and could include stock options or profit sharing that would substantially increase the Broccoli family’s payout. Rebecca Rubin, Variety, 22 Oct. 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 7 Nov. 2025.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

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