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.
Meta also recently opted to reduce its annual distribution of stock options by about 10% for most of its staff, The Financial Times reports, reducing the total compensation for tens of thousands of employees. Will McCurdy, PCMAG, 22 Feb. 2025 Meta also slashed its annual distribution of stock options by about 10% for thousands of employees, according to a report published Thursday by the Financial Times. Jonathan Vanian, CNBC, 20 Feb. 2025 The board as a group is returning $277 million in cash, over $450 million of stock options and foregoing options for 2021 through 2023. Alan Ohnsman, Forbes, 14 Feb. 2025 But the super-rich are often loaded up with a range of assets, like stock options and stakes of private companies whose values are a bit murkier. Allison Morrow, CNN, 23 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 4 Mar. 2025.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

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