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
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Software engineers typically earn an average salary of around $123,000 to $205,000 per year, along with bonuses and stock options that push the total compensation higher. Jack Kelly, Forbes.com, 9 Apr. 2025 As part of the business model always is employee stock ownership, stock options, that means that all of our employees have the upside of the success in the business. Megan Poinski, Forbes, 24 Mar. 2025 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 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 22 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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