STOCK OPTION

Pronunciation (US):

(GB):

IPA (US):

 Dictionary entry overview: What does stock option mean? 

• STOCK OPTION (noun)
  The noun STOCK OPTION has 2 senses:

1. the right to buy or sell a stock at a specified price within a stated period

2. a benefit given by a company to an employee in the form of an option to buy stock in the company at a discount or at a fixed price

  Familiarity information: STOCK OPTION used as a noun is rare.

 Dictionary entry details 

• STOCK OPTION (noun)

Sense 1

Meaning:

The right to buy or sell a stock at a specified price within a stated period

Classified under:

Nouns denoting possession and transfer of possession

Hypernyms ("stock option" is a kind of...):

option (the right to buy or sell property at an agreed price; the right is purchased and if it is not exercised by a stated date the money is forfeited)

Hyponyms (each of the following is a kind of "stock option"):

call option (an option to buy)

put option (an option to sell)

Sense 2

Meaning:

A benefit given by a company to an employee in the form of an option to buy stock in the company at a discount or at a fixed price

Classified under:

Nouns denoting possession and transfer of possession

Context example:

stock options are not much use as an incentive if the price at which they can be exercised is out of reach

Hypernyms ("stock option" is a kind of...):

benefit (financial assistance in time of need)