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

For tech founders, the ability to shift their businesses quickly, hiring and firing as needed and paying workers with stock options instead of offering traditional salaries and benefits, is key to success.

From Washington Post

In addition to his 20% stake in the automaker, he’s sitting on about $42 billion of unrealized paper gains on vested stock options.

From Fortune

He also has some $42 billion in vested stock options, according to SEC filings.

From TechCrunch

Including employee stock options and restricted share units, Affirm would have a valuation of more than $11 billion, the filing showed.

From Fortune

That’s how much Snowflake CEO Frank Slootman earns every month in the form of stock options in his cloud-computing company, which has been one of the hottest names on Wall Street since its September IPO.

From Fortune