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 Tens of thousands of tech workers have lost their jobs this year, and the next generation is taking notice that the days of free meals and hefty stock options may be over. Britney Nguyen, Quartz, 16 July 2024 To remain competitive in acquiring talent, GM will now incorporate restricted stock units in lieu of stock options, which has become the more common practice. Jamie L. Lareau, Detroit Free Press, 24 Apr. 2024 Bank executives and directors who fail to properly oversee their firms’ investments should lose their jobs, their stock options, and their past years’ bonuses -- and if shareholders will not impose such penalties, the government needs to do so. J. Bradford Delong, Foreign Affairs, 11 June 2013 Some real estate agents say high-performing tech stocks are behind the uptick in Bay Area sales, allowing tech company employees to cash out their stock options to put a higher down payment on a home. Kate Talerico, The Mercury News, 30 May 2024 See all Example Sentences for stock option 

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'stock option.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

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 19 Aug. 2024.

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!