stock option

American

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.

Etymology

Origin of stock option

First recorded in 1940–45

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Meta Platforms launched a new stock option program for top executives, requiring a $9 trillion market capitalization by 2031 for full value.

From The Wall Street Journal • Mar. 25, 2026

Tesla shareholders approved a stock option package for Elon Musk, potentially worth $1 trillion if performance incentives are met over 10 years.

From Barron's • Nov. 7, 2025

The equity award consists of restricted stock valued at $25 million and 1.055 million stock option.

From The Wall Street Journal • Oct. 22, 2025

Earnings, adjusted for stock option expense and non-recurring costs, were 29 cents per share.

From Seattle Times • Apr. 29, 2024

Should we sell the rising stock option and risk losing out on its further ascent, or hold on to it and risk its decline and the loss of our premium?

From "Innumeracy: Mathematical Illiteracy and Its Consequences" by John Allen Paulos

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023