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.
If the buyer is not a U.S. company and does not desire to grant stock options or equity incentives, what types of cash compensation plans will the buyer use to retain key employees of the seller? Allbusiness, Forbes, 11 Jan. 2025 UnitedHealth Group's annual Proxy Statement for 2023, which is the latest available, put , though with stock options and compensation his total earnings for the year were $10,221,898. James Bickerton, Newsweek, 5 Dec. 2024 Musk does not receive any cash salary or other bonuses, only stock options, as compensation. Chris Isidore, CNN, 3 Dec. 2024 The stock options Tesla granted to Musk were initially worth $2.6 billion but had soared to $56 billion when McCormick blocked the package in January, according to Bloomberg News. Aimee Picchi, CBS News, 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 15 Jan. 2025.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!