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.
The democratic socialist also pointed out that the former governor failed to disclose $2.6 million in stock options on his city filings. Josephine Stratman, New York Daily News, 12 Aug. 2025 When a company engages in equity transactions, whether issuing employee stock options, facilitating a secondary trade or repurchasing shares, the implications on its valuation can be substantial. Meenal Aggarwal, Forbes.com, 7 Aug. 2025 Colter will play a lawyer fired by a Silicon Valley start-up intending to cheat him out of his stock options. Nellie Andreeva, Deadline, 6 Aug. 2025 If courts again wipe out his original 2018 award of 303 million stock options, Musk gets to keep the new 96 million shares, worth about $29 billion at the current stock price. Amanda Gerut, Fortune, 4 Aug. 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 21 Aug. 2025.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

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