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English definition of “stock option”

stock option

noun [C]
 
 
STOCK MARKET, FINANCE
[usually plural] (also share option) a contract for the right to buy and sell shares at a later date or within a certain period at a particular price: It's like persuading people to buy stock options back immediately after the 1987 stock market crash. He netted over $217 million from the sale of stock options between 1998 and 2001. → Compare call option, put option
the right of an executive or other employee to buy shares in their company at a lower price than usual: The increased use of stock options makes it harder to gauge exactly what people are earning. The corporation proposes to implement an employee stock option plan for key employees.
(Definition of stock option from the Cambridge Business English Dictionary © Cambridge University Press)
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