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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Planning Tip: The exercise of incentive stock options or ISOs aren’t considered to be income for regular tax purposes, but it is considered income for AMT purposes. Jonathan I. Shenkman, Forbes, 29 Nov. 2024 That included a salary of $2.5 million, stock awards worth $15 million, stock options worth $9.2 million and a $8.55 million cash incentive bonus. Todd Spangler, Variety, 26 Nov. 2024 The filing also details recent developments, including an underwriting agreement for a public offering and the grant of stock options under its 2024 Equity Incentive Plan. Quartz Bot, Quartz, 14 Nov. 2024 But Musk and Tesla’s aggressive tactics and outspoken opposition to unionization – in addition to Tesla’s strategy of granting factory workers stock options – has kept unionizing efforts at bay. David Goldman, CNN, 13 Aug. 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 14 Dec. 2024.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

Last Updated: - Updated example sentences
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