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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But, there is a downside—the value of stock options can diminish or even become worthless if the stock price drops. Gegham Azatyan, Forbes, 25 Oct. 2024 Elon Musk continues to top the list, ahead of Amazon founder Jeff Bezos (No. 2), for the third consecutive year—despite losing $7 billion as shares of Tesla fell 14% and a Delaware judge voiding $56 billion of his stock options in January. Forbes Press Releases, Forbes, 1 Oct. 2024 Musk owns another 303 million stock options linked to his epic and controversial compensation package, which was struck down by a judge but then revived and approved by shareholders. Matt Egan, CNN, 17 Sep. 2024 The award consisted of 12 tranches of Tesla stock options, each equivalent to 1% of shares outstanding at the time of the award. Christiaan Hetzner, Fortune, 27 Sep. 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 8 Nov. 2024.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

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