stock option
noun
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.
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Nearby words
- stock horse,
- stock in trade,
- stock ledger,
- stock lock,
- stock market,
- stock options,
- stock power,
- stock raising,
- stock record,
- stock saddle
Origin of stock option
First recorded in 1940–45
Dictionary.com Unabridged
Based on the Random House Unabridged Dictionary, © Random House, Inc. 2019
stock options
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.
The New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.