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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That means that 2025 could present opportunities for taxpayers who can control the timing of ordinary income (such as exercising incentive stock options) or certain deductions. Kelly Phillips Erb, Forbes, 24 Dec. 2024 The company's effective tax rate decreased to 17.5% from 20.0% in the prior year, influenced by a larger tax benefit from stock option exercises. Quartz Bot, Quartz, 19 Dec. 2024 In addition, as of April 4, Zaslav owned 14.7 million in stock options (representing shares that could be acquired within 60 days of that date), per WBD’s proxy filing. Todd Spangler, Variety, 18 Dec. 2024 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 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 30 Dec. 2024.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

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