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.
That included the pay package for CEO Bob Iger totaling $41.1 million for the period (up 30% from 2023), which included stock grants worth $18.25 million and stock options valued at $12 million. Todd Spangler, Variety, 20 Mar. 2025 Courtesy: Intel New Intel CEO Lip-Bu Tan will receive total compensation of $1 million in salary and about $66 million in stock options and grants vesting over the coming years, according to filing on Friday with the SEC. Kif Leswing, CNBC, 14 Mar. 2025 Hochul is also bothered by the high salaries and stock options (running into the millions) for Con Ed’s top leaders and at her direction the PSC will now audit the compensation levels at every utility in the state. New York Daily News Editorial Board, New York Daily News, 15 Feb. 2025 The employee questions that frequently arise in M&A transactions include the following: How will the outstanding stock options and restricted equity issued by the seller be dealt with in allocating the M&A consideration? Allbusiness, Forbes, 11 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

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Cite this Entry

“Stock option.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stock%20option. Accessed 2 Apr. 2025.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

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