stock option

noun

1. an option giving the holder, usually an officer or employee, the right to buy stock of the issuing corporation at a specific price within a stated period.

Word History and Origins

Origin of stock option¹

First recorded in 1940–45

Example Sentences

Critics say that would affect startup founders, whose company valuations fluctuate and whose compensation is based on stock options.

From Los Angeles Times

Support for the pay award, made up of stock options, will come as a relief to Mr. Musk’s admirers, who feared that rejection would prompt him to spend less time managing Tesla or even quit.

From New York Times

But its stock options, so it’s always going up and down.

From New York Times

It will no longer give out stock options, which can give executives a payday as long as the stock price stays above a certain level.

From Seattle Times

Losses, adjusted for stock option expense, came to 7 cents per share.

From Seattle Times