The right to purchase a specified number of shares of a company's stock for a specified price at a future date is called a:

Question

Quizplus · Accepted Answer

A stock option grants the holder the right, but not the obligation, to purchase a specified number of shares of a company's stock at a specified price (the strike price) at a future date. This is different from a stock grant, which is a grant of shares of stock to an employee as part of their compensation package, and a stock right, which is the right to purchase additional shares of stock at a discounted price as part of a shareholder's existing investment. A stock bid refers to the price at which investors are willing to purchase a stock.

The Right to Purchase a Specified Number of Shares of a Company's