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
These examples are automatically compiled from online sources to illustrate current usage. Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
Musk had tweeted in 2018 that unionized workers would lose stock options. David Ingram, NBC News, 5 Nov. 2024 For some early employees, one potential tax planning opportunity is an early exercise of stock options. Kristin McKenna, Forbes, 1 Nov. 2024 Some of this will be made up of stock options, the full value of which might never be realized due to fluctuations in stock prices and vesting schedules. Kathryn Hopkins, WWD, 1 Nov. 2024 But, there is a downside—the value of stock options can diminish or even become worthless if the stock price drops. Gegham Azatyan, Forbes, 25 Oct. 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 13 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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