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stock option plan

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Legal Dictionary

Main Entry: stock option plan
Function: noun
: a form of deferred compensation that allows an employee to buy corporate stock at a set price (as the prevailing market price at the time of the contract) at any time (as when the market price has risen) during a designated number of years
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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