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 reports would have to include executive salaries, benefits, stock options, bonuses, stock buybacks and other taxable payments and be published annually on the office’s website. Ron Hurtibise, Sun Sentinel, 26 Feb. 2026 That doesn’t include her stock options and a bonus tied to the company’s IPO price. Emma Hinchliffe, Fortune, 9 Feb. 2026 The actress has already been paid $1 million and stock options as part of a deal agreed in 2022. Bloomberg, Oc Register, 6 Feb. 2026 Since the 1990s, company boards have shifted away from stock options, which incentivize short-term performance, with stock awards, which boards argue are driven by longer-term incentives. Robert Frank,devan Burris, CNBC, 24 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

Browse Nearby Words

Cite this Entry

“Stock option.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stock%20option. Accessed 1 Mar. 2026.

Legal Definition

stock option

see also:

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!

More from Merriam-Webster