noun, verb, -cised, -cis⋅ing.| 1. | bodily or mental exertion, esp. for the sake of training or improvement of health: Walking is good exercise. |
| 2. | something done or performed as a means of practice or training: exercises for the piano. |
| 3. | a putting into action, use, operation, or effect: the exercise of caution. |
| 4. | a written composition, musical piece, or artistic work executed for practice or to illustrate a particular aspect of technique. |
| 5. | Often, exercises. a traditional ceremony: graduation exercises. |
| 6. | a religious observance or service. |
| 7. | to put through exercises, or forms of practice or exertion, designed to train, develop, condition, or the like: to exercise a horse. |
| 8. | to put (faculties, rights, etc.) into action, practice, or use: to exercise freedom of speech. |
| 9. | to use or display in one's action or procedure: to exercise judgment. |
| 10. | to make use of (one's privileges, powers, etc.): to exercise one's constitutional rights. |
| 11. | to discharge (a function); perform: to exercise the duties of one's office. |
| 12. | to have as an effect: to exercise an influence on someone. |
| 13. | to worry; make uneasy; annoy: to be much exercised about one's health. |
| 14. | to go through exercises; take bodily exercise. |

ex·er·cise (ěk'sər-sīz') n.
v. tr.
To take exercise. [Middle English, from Old French exercice, from Latin exercitium, from exercitus, past participle of exercēre, to exercise : ex-, ex- + arcēre, to restrain.] ex'er·cis'a·ble adj. |
Exercise
An action by a stockholder taking advantage of a privilege offered by a company or other financial institution. This includes warrants, options, and other exotic financial instruments.
Investopedia Commentary
When you exercise your stock option, you "trade in" your options for the actual stock.
Related Links
Option Compensation - Part One
Option Compensation - Part Two
See also: Cashless Exercise, Option, Strike Price, Warrant
exercise
exercise ex·er·cise (ěk'sər-sīz')
n.
Active bodily exertion performed to develop or maintain fitness.