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stock option

noun

  1. an option giving the holder, usually an officer or employee, the right to buy stock of the issuing corporation at a specific price within a stated period.


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Word History and Origins

Origin of stock option1

First recorded in 1940–45
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Example Sentences

Examples have not been reviewed.

It also split the managerial class: You have CEOs and other top management getting rewarded with stock options, so they become completely aligned with the owners of capital.

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Stock market volatility tends to depress initial public offerings and exercises of stock options, which are two important sources of capital gains that boost state revenues.

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Mostly to reduce corporate and income taxes, companies tend to keep the cash components of their executives’ pay as meager as possible, as opposed to stock and stock options.

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The pay package came in the form of stock options, according to The New York Times, and now may be worth over $100 billion since Tesla stock soared after President-elect Donald Trump’s victory in November.

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Critics say that would affect startup founders, whose company valuations fluctuate and whose compensation is based on stock options.

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