{"ok":true,"canonical_url":"https://dealroom.so/glossary/stock-option","api_url":"https://dealroom.so/api/public/glossary/stock-option","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"stock-option","term":"Stock option","group":"Reading the business","definition":"The right, but not the obligation, to buy a company's stock at a predetermined price. If present in a target business, these can dilute your ownership or create future liabilities.","what_it_means":"In an asset purchase, existing stock options are typically not a concern. However, in a stock purchase, you inherit all existing obligations. You must understand how any outstanding stock options or warrants will be handled, usually by being exercised or bought out by the seller before closing.","url":"https://dealroom.so/glossary/stock-option","official_sources":[],"related":[{"slug":"stock-purchase","term":"Stock purchase","url":"https://dealroom.so/glossary/stock-purchase"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"}],"related_questions":[{"question":"Does an unfunded stock option agreement trigger affiliation for SBA 7(a) size standard calculations?","url":"https://dealroom.so/for-lenders/questions/does-an-unfunded-stock-option-agreement-trigger-affiliation-for-sba-7-a-size-standard-calc"},{"question":"What is the difference between an asset and stock purchase in a buyout?","url":"https://dealroom.so/sba-7a/questions/what-is-the-difference-between-an-asset-and-stock-purchase-in-a-buyout"},{"question":"What if the value of my stock portfolio (for equity injection) drops before closing?","url":"https://dealroom.so/sba-7a/questions/what-if-the-value-of-my-stock-portfolio-for-equity-injection-drops-before-closing"},{"question":"Can an SBA 7(a) loan be used to buy stock or passive investments?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-buy-stock-or-passive-investments"},{"question":"Does the SBA 7(a) loan program have an 'Express' option for quicker approvals?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-7-a-loan-program-have-an-express-option-for-quicker-approvals"},{"question":"What documentation is required to verify equity injection funds sourced from a personal stock sale?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-verify-equity-injection-funds-sourced-from-a-personal-st"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Stock option","url":"https://dealroom.so/glossary/stock-option","source_type":"DealRoom Data"}}