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

The company is also changing how it awards bonuses and stock options as it reorganizes its workforce around AI efforts.

From The Wall Street Journal • Apr. 23, 2026

He was nearly wiped out but got back on his financial footing when a venture capitalist asked him in 1986 to be chairman of the board, with stock options, of a new company called Magellan.

From Los Angeles Times • Apr. 8, 2026

The stock options that the DeepMind scientists had mentally written off might soon be worth a fortune.

From The Wall Street Journal • Mar. 25, 2026

Gains value the company at about $1.8 trillion, including CEO Elon Musk’s vested stock options, and trading for about 206 times estimated 2026 earnings.

From Barron's • Feb. 25, 2026

From barter to the trading of commodities futures and stock options, from money to the cashless society, markets constitute frameworks for higher transaction efficiency, often equated with profit.

From The Civilization of Illiteracy by Nadin, Mihai