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.
Otherwise the ISOs become nonqualified stock options (NQSOs). — Bruce Brumberg, Forbes.com, 29 July 2026 Learn More View More Another great option, Charles Schwab, has some of the lowest rates in the industry and offers commission-free stock options and ETFs. — Dan Avery, CNBC, 26 July 2026 Blue Origin also needs such a plan to compete with the lucrative stock options offered by SpaceX to its employees. — Eric Berger, ArsTechnica, 10 July 2026 Today on the show, how stock options built California as a tech hub. — Darian Woods, NPR, 24 June 2026 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

Rhymes for stock option

See All Rhymes for stock option

Browse Nearby Words

stock melon
stock option
stock pass
See all Nearby Words

Cite this Entry

“Stock option.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stock%20option. Accessed 5 Aug. 2026.

Copy Citation

Legal Definition

stock option

see also:
option sense 3

More from Merriam-Webster on stock option

Britannica.com: Encyclopedia article about stock option

Last Updated: - Updated example sentences
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