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
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The company has $45 million in minority interests, <$1 million in deferred tax liabilities, $140 million in outstanding employee stock options, and no excess cash. David Trainer, Forbes.com, 30 Apr. 2025 The executives compensation packages include stock options, the full value of which might never be realized due to fluctuations in stock prices and vesting schedules. David Moin, Footwear News, 2 Apr. 2025 Not Understanding Complicated Assets Complex assets include businesses; real estate; investment portfolios; luxury items such as art, jewelry and high-end cars; trusts; intellectual property; offshore accounts; restricted stock units; unvested stock options; and pensions. Aviva Pinto, Forbes, 11 Mar. 2025 Offer meaningful equity—Whether through stock options, profit-sharing or alternative incentives, companies must design real paths for stakeholders to participate in success, not just work for it. Cheryl Robinson, Forbes.com, 29 Apr. 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 16 May. 2025.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

Last Updated: - Updated example sentences
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