stock options

Cultural  

1. The right to purchase a company's shares at a future date at an agreed price. Companies often give stock options to their executives as an incentive to improve the company's performance and boost its share price. If the share price has risen above the agreed price of the option by the time the option is exercised, the executive stands to make a considerable profit.

---

Example Sentences

AI startup Chief Executive Grant Lee remembers having to borrow over $200,000 to exercise his stock options as a rookie startup employee almost 10 years ago.

From The Wall Street Journal

Garner has also received stock options, and is eligible for a cash bonus tied to the public offering price.

From The Wall Street Journal

He is also eligible to receive stock options that could run as high as $26.25 million.

From MarketWatch

Matt Jaffe of Montana State University and Simon act as consultants to and hold stock options in Atom Computing.

From Science Daily

When the dot-com bubble burst, stock options were worth far less. Amazon.com’s stock lost 95%, partly because it had to start paying employees real money, which reduced cash flow.

From Barron's