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.
Four days later, Musk became the first person ever worth $700 billion, after the Delaware Supreme Court overturned a lower court ruling that had voided an award of Tesla stock options now worth $126 billion to Musk. Matt Durot, Forbes.com, 17 Jan. 2026 Jejurikar has been awarded a performance incentive of more than 130,000 company stock options. Alexander Coolidge, USA Today, 14 Jan. 2026 Jejurikar has been awarded a performance incentive of more than 130,000 company stock options. Alexander Coolidge, Cincinnati Enquirer, 13 Jan. 2026 The real money for CEOs, however, comes in the form of stocks, stock options, and other noncash awards. Alex Crippen, CNBC, 10 Jan. 2026 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 29 Jan. 2026.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

Last Updated: - Updated example sentences
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