{"ok":true,"canonical_url":"https://dealroom.so/glossary/stock-option-agreement","api_url":"https://dealroom.so/api/public/glossary/stock-option-agreement","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-agreement","term":"Stock Option Agreement","group":"Doing the deal","definition":"A contract that gives an employee or investor the right, but not the obligation, to purchase a company's stock at a predetermined price within a certain timeframe.","what_it_means":"If you're buying a business via a stock purchase, be aware of any existing stock option agreements. These can dilute your ownership percentage if exercised. In an asset purchase, this is less relevant as you're not acquiring the existing corporate entity directly. Ensure all outstanding options are identified and addressed in the purchase agreement.","url":"https://dealroom.so/glossary/stock-option-agreement","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":"common-control","term":"Common Control","url":"https://dealroom.so/glossary/common-control"},{"slug":"warrant","term":"Warrant","url":"https://dealroom.so/glossary/warrant"}],"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 Agreement","url":"https://dealroom.so/glossary/stock-option-agreement","source_type":"DealRoom Data"}}