Meaning of the word "stock option" in English

What does "stock option" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

stock option

US /ˈstɑːk ˌɑːp.ʃən/
UK /ˈstɑːk ˌɑːp.ʃən/
"stock option" picture

Noun

1.

the right to buy or sell a stock at a specified price within a specified period of time

Example:
Many tech companies offer stock options to their employees as part of their compensation package.
Exercising a stock option allows an employee to purchase company shares at a predetermined price.
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