Definition from Nolo’s Plain-English Law Dictionary
The right to purchase stock in the future at a price set at the time the option is granted (by sale or as compensation by the corporation). To actually obtain the shares of stock the owner of the option must exercise the option by paying the agreed upon price and requesting issuance of the shares.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:25 pm