Option Grant
/ˈɒpʃən ɡrɑːnt/
Definitions
- (n.) A legal instrument conferring the right, but not the obligation, to purchase or acquire an asset, such as stock or property, under specified terms within a set timeframe.
The employee received an option grant to buy company shares after one year of service.
Forms
- option grant
- option grants
Related terms
See also
Commentary
Use precise language to differentiate option grants from binding purchase obligations; clearly specify exercise conditions and expiration to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.