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.

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Example Sentences

Typically, startup employees are given stock options as part of their compensation packages.

From The Wall Street Journal

An index tracking individual stock options and index options, meanwhile, is trending toward the highest since the October selloff.

From Barron's

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