stock option

Definition

An option in which the underlier is the common stock of a corporation, giving the holder the right to buy or sell its stock, at a specified price, by a specific date. also called equity option.

Use stock option in a sentence

You need to try and make sure you have done your research before you decide to take on a stock option.

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The stock option was exercised by the broker who had made the recommendation to evaluate their position on every single holding.

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There are a lot of executives and managers who get an array of perks at my company, yet they can't offer the lower-level employees a single stock option.

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deferred compensation underlying