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 Musk will be eligible for another stock option payout worth hundreds of millions of dollars—in addition to payouts for reaching $100 billion and $150 billion. Timothy B. Lee, Ars Technica, "Stock surge makes Tesla the world’s most valuable automaker," 1 July 2020 The majority of Johnson’s total reported compensation at the parent company of Pacific Gas and Electric Co. came through $11.1 million in stock options, according to a filing the company made this week with the Securities and Exchange Commission. J.d. Morris,, "PG&E CEO earned $18.5 million on paper. He can’t use most of it," 1 Apr. 2020 Add in Tesla's stock options for employees and others and the company's total market value is nearly $100 billion. Stephen Gandel, CBS News, "Tesla Motors is now America's most valuable car company," 8 Jan. 2020 MedMen’s budtender jobs pay $16 to $17 an hour, with full benefits and stock options for full-time employees, Williams said. Abdel Jimenez,, "Marijuana companies are recruiting as Illinois nears recreational weed sales. ‘I don’t know how my parents will take it.’," 16 Oct. 2019 But unbeknownst to Choi, the lawsuit contends, Park had nearly bankrupted the company after taking out more than $3 million and investing it in risky stock options., "You're using a browser set to private or incognito mode.," 6 Oct. 2019 Employees, for example, can cash out rather than be stuck with underwater stock options. Michael J. Coren, Quartz, "After Slack, the IPO market might never be the same," 19 June 2019 The Legacy Escort Over/Under ($622) comes in two stock options: Turkish walnut or Silver Synthetic. Curtis Niedermier, Outdoor Life, "The Best Over/Under Shotguns for Less than $1,000," 5 Nov. 2012 That market cap could turn into a supercharged payday for CEO Elon Musk, enabling him to receive a stock option package that’s worth close to $400 million. Washington Post, "Asian shares higher despite growing impact of China virus," 23 Jan. 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

22 Jul 2020

Cite this Entry

“Stock option.” Dictionary, Merriam-Webster, Accessed 13 Aug. 2020.

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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

More from Merriam-Webster on stock option Encyclopedia article about stock option

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