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.
Traditionally, successful exits – whether through IPOs or acquisitions – provided returns to employees through stock options and equity participation. Josipa Majic Predin, Forbes.com, 15 July 2025 These figures exclude stock options and bonuses, which can double or triple the total package. Ashley Lutz, Fortune, 11 July 2025 She is also entitled to a pro-rated bonus for the fiscal 2025 year, which ends July 31 and will be awarded her outstanding stock options. John Meyer, Denver Post, 28 May 2025 The industry supports high-paying positions and generates substantial tax revenue through stock options and capital gains when employees sell their shares. Piper Heath, Los Angeles Times, 2 July 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 30 Jul. 2025.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

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