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.
Thompson had an annual pay package of $10.2 million—including salary, bonus and stock options awards, according to The Associated Press. CEO and other top executive roles are also rarely advertised by the recruiters who fill the positions. Daniel R. Depetris, Newsweek, 6 Dec. 2024 The package's stock options are now worth more than $100 billion, based on Tesla's closing price yesterday. Peter Weber, theweek, 3 Dec. 2024 Some, for example, involve the calculation of the alternative minimum tax (AMT), a big concern for anyone with incentive stock options (ISOs). Bruce Brumberg, Forbes, 3 Dec. 2024 The pay package, now worth around $101 billion based on Tesla’s closing share price Monday, is made up of 303 million Tesla stock options. Samantha Delouya, CNN, 2 Dec. 2024 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

Dictionary Entries Near stock option

Cite this Entry

“Stock option.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stock%20option. Accessed 23 Dec. 2024.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

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