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.
Chen was the company’s president and chief financial officer before stepping down in 2023, and is the company’s fifth billionaire thanks to the boatload of stock options he was awarded during his tenure. Connor Greene, Forbes, 25 Dec. 2024 The package, now worth around $101 billion based on Tesla’s closing share price Monday, is made up of 303 million Tesla stock options. Andrew Torgan, CNN, 3 Dec. 2024 That’s on top of the $38.7 million in compensation that he’s already realized since 2021, consisting of salary, bonus, and vested stock, and exercised stock options, according to calculations by executive compensation data firm Equilar. Jenn Brice, Fortune, 3 Dec. 2024 More coherent stock option regulation, enhanced incentives to found a company, and lower entrepreneur taxes. Jorge Lluch, Fortune Europe, 26 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 5 Jan. 2025.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!