Meaning of “option to buy” in the English Dictionary

"option to buy" in Business English

See all translations

option to buynoun [ C ]

uk us 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.


(Definition of “option to buy” from the Cambridge Business English Dictionary © Cambridge University Press)