Definition, Meaning & Synonyms
grant-an-option
verb phrase
/ɡrænt ən ˈɒpʃən/
Definition
To give someone the right, but not the obligation, to purchase an asset at a specified price within a certain time frame.
Examples
- The company decided to grant an option to its employees, allowing them to buy shares at a fixed price.
- Investors can gain significant benefits when a firm grants an option, as it provides a potential for profit.
- Often, companies will grant an option as part of a compensation package to attract talent.
Meaning
This term often relates to financial agreements or contracts where one party provides another with the opportunity to engage in a particular transaction, typically involving stocks or properties.
Synonyms
- Provide a choice
- Authorize a purchase
- Allocate rights
