stock option


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.

Origin of stock option

First recorded in 1940–45 Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2019

Culture definitions for stock options

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.