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 increase was primarily due to a lower income tax benefit recognized for excess tax benefits from stock option exercises. Quartz Intelligence Newsroom, Quartz, 12 Feb. 2025 First, research industry-specific salary ranges, and consider other forms of compensation, like stock options, health benefits and bonus structures. Danielle Chemtob, Forbes, 16 Jan. 2025 Not just stock options — pre-AOL merger stock options. Joel Stein, The Hollywood Reporter, 14 Jan. 2025 As of December 31, 2024, the company held $8.83 billion in cash, cash equivalents, and investments, an increase of $1.49 billion from the previous year, primarily due to cash provided by operating activities and proceeds from stock option exercises. Quartz Intelligence Newsroom, Quartz, 31 Jan. 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

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 21 Feb. 2025.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

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