Cambridge Dictionaries online Cambridge Dictionaries online

The most popular online dictionary and thesaurus for learners of English

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)
What is the pronunciation of stock option?
Add Cambridge dictionaries to your browser to your website

Word of the Day

bitter

a type of dark brown beer with a bitter taste

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