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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The effective income tax rate increased to 23.5%, up from 22.2% in the prior year, due to unrecognized tax losses and a tax shortfall from stock option exercises. Quartz Bot, Quartz, 7 Nov. 2024 Stock Options The two founders, Marcus and Blank, turned longtime store employees into millionaires through stock options, which were introduced as part of their philosophy of treating co-workers well to gain their loyalty. Chris Morris, Fortune, 5 Nov. 2024 The average total compensation (comprising salary, bonus and restricted stock options) of workers repped by the Tech Guild unit is $190,000, which is $40,000 more on average than journalists in the Times Guild, according to the company. Todd Spangler, Variety, 4 Nov. 2024 Programs such as the Enterprise Management Incentive scheme help startups give stock options to early employees, and research & development tax credits support initial innovation. Alena Botros, Fortune Europe, 1 Nov. 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 25 Nov. 2024.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

Last Updated: - Updated example sentences
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