Cambridge Dictionaries online Cambridge Dictionaries online

The most popular online dictionary and thesaurus for learners of English

  

English definition of “option to buy”

option to buy

noun [C]     (also option to purchase)
FINANCE, STOCK MARKET an agreement that gives an investor the right to buy a particular number of shares, or other financial assets, at a fixed price and before a fixed date: The option to buy expired last Friday.
FINANCE, COMMERCE an agreement in which a company buys a product from another company and has the right to buy more of that product later, but does not have to do so: exercise/have/receive an option to buy The executive can exercise the option to purchase and then resell it into the market at the higher price.
FINANCE, PROPERTY a financial agreement that gives someone the right to buy property or land within an agreed time and for an agreed amount, especially after they have rented it for a particular amount of time: The city leased the building to Rescue Ministries in 2009 with an option to buy. City officials signed a $5,000 90-day option to purchase on the building, which is located in the heart of downtown.
→ Compare rent-to-own
(Definition of option to buy noun from the Cambridge Business English Dictionary © Cambridge University Press)
Focus on the pronunciation of option to buy

Word of the Day

limber up

to do gentle exercises to stretch the muscles in order to prepare the body for more active physical exercise

Word of the Day

Blog

Read our blog about how the English language behaves.

Learn More

New Words

Find words and meanings that have just started to be used in English, and let us know what you think of them.

Learn More