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 Bold bets can also be seen in the market for stock options, which are derivatives tied to the share price of a stock. Joe Rennison, New York Times, 3 Apr. 2024 And while Neumann is worth approximately $2.3 billion according to Bloomberg, the 2019 IPO fumble meant many staffers’ stock options were rendered worthless. Eleanor Pringle, Fortune, 26 Mar. 2024 Note the profit-first payoff areas: Stock price and stock options. John S. Tobey, Forbes, 28 Mar. 2024 Because, according to Huffman and the company SEC filing, the board canceled his existing stock awards and then granted him a new equity package in late 2023 that included stock, as well as stock options at various escalating strike prices. Byorianna Rosa Royle, Fortune, 19 Mar. 2024 Days after announcing pay raises for employees and stock options for store managers, Walmart has announced plans to remodel hundreds of existing stores and open more than 100 stores over the next five years. Emily Deletter, The Courier-Journal, 23 Feb. 2024 Compensation figures include base salary, cash bonuses, perks, stock options, stock awards and changes in the value of retirement benefits. Daniel De Visé, USA TODAY, 13 Mar. 2024 Furthermore, Winfrey will also donate the proceeds from any future exercise of her WW stock options, the company said. Amanda Gerut, Fortune, 29 Feb. 2024 Kreiz’s total compensation in 2022 was $11.9 million, including a base pay of $1.5 million, stock awards of $7.69 million and stock options of $2.56 million, according to a regulatory filing. Tribune News Service, The Mercury News, 29 Feb. 2024

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 23 Apr. 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!