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 per-share purchase price — akin to a stock option’s exercise price — echoes back to when companies would hand out options to executives but set their grant date to an earlier point in time when the share price was lower. Bloomberg, Mercury News, 4 Aug. 2025 When Hemsley returned as CEO in June, the board of directors gave him a one-time $60-million award of stock options that would vest after three years. Geoff Colvin, Fortune, 31 July 2025 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 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 7 Aug. 2025.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

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