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

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

For years, the most popular use of stock options was to construct covered call positions. —Hersh Shefrin, Forbes, 31 Dec. 2024

And that volatility can be a stock options trader's dream come true — so such traders will be interested to know that Exxon Mobil has options available that expire January 31th. —Dividend Channel, Forbes, 22 Jan. 2025

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

Word History

First Known Use

1877, in the meaning defined at sense 1

Legal Definition

stock option

see option sense 3