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 Some real estate agents say high-performing tech stocks are behind the uptick in Bay Area sales, allowing tech company employees to cash out their stock options to put a higher down payment on a home. Kate Talerico, The Mercury News, 30 May 2024 Obsessed with quarterly returns and stock prices, CEOs and corporate boards have rewarded shareholders by buying back stocks, increasing the value of the remaining shares and hence of the stock options that form part of most executive pay packages. Mariana Mazzucato, Foreign Affairs, 2 Oct. 2020 Like many bigwigs, Benioff’s real worth comes from his stock options. Chloe Berger, Fortune, 2 July 2024 While the for-profit entity Proton AG can still do things like offer stock options to recruits and even raise its own capital on private markets, the Foundation serves as a backstop against moving too far from Proton's founding mission, Yen wrote. Kevin Purdy, Ars Technica, 17 June 2024 See all Example Sentences for stock option 

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'stock option.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

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

Dictionary Entries Near stock option

Cite this Entry

“Stock option.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stock%20option. Accessed 27 Jul. 2024.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!