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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 from the Cambridge Business English Dictionary © Cambridge University Press)
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