Stock Option Agreement
/ˈstɒk ˈɒpʃən əˈɡriːmənt/
Definitions
- (n.) A legal contract granting an individual the right to purchase company stock at a predetermined price within a specified timeframe.
The employee signed a stock option agreement as part of their compensation package.
Forms
- stock option agreement
- stock option agreements
Related terms
See also
Commentary
Stock option agreements often require careful drafting to define exercise conditions, vesting, and expiration to prevent disputes.
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.