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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The strategists argue that while broader hedges like index puts can be expensive, single-stock options on companies with limited fundamental support can offer a more targeted and cost-efficient way to protect portfolios in a downturn. Yun Li, CNBC, 22 Oct. 2025 This is significantly short of the $1B figure reported when the Bond deal was agreed, but as Deadline noted at the time, the structure of the joint venture was unknown and could have included Amazon stock options. Anthony D'alessandro, Deadline, 22 Oct. 2025 However, the deal’s exact structure isn’t clear and could include stock options or profit sharing that would substantially increase the Broccoli family’s payout. Rebecca Rubin, Variety, 22 Oct. 2025 Meanwhile, a founder scaling across Europe must incorporate separate entities in each country, untangle regulatory and employment codes in multiple languages and markets, and explain to engineers in Munich why their stock options are treated differently to their colleagues’ in Madrid. Jan Hammer, Fortune, 18 Oct. 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 2 Nov. 2025.

Legal Definition

stock option

see option sense 3

More from Merriam-Webster on stock option

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