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.
Additionally, timing the exercise of stock options strategically—considering capital gains tax rates and company performance—can optimize after-tax returns. Meredith Moore, Forbes.com, 3 Apr. 2025 Last week, longtime Musk ally James Murdoch -- the estranged son of Fox boss Rupert Murdoch and a board member since 2017 -- became the latest to do so, exercising a stock option and selling shares worth approximately $13 million, according to an SEC filing. Olivia Rubin, ABC News, 18 Mar. 2025 Tesla urged Delaware’s highest court to salvage Elon Musk’s record-setting pay package after a lower-court judge rejected it twice, taking his epic legal battle over tens of billions of dollars in stock options to the next level. Sabrina Willmer, Fortune, 12 Mar. 2025 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 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 14 Apr. 2025.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

Last Updated: - Updated example sentences
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