Word info

optionality

Noun

Meaning

(finance, business) The value of additional optional investment opportunities available only after having made an initial investment.
The short-term payoff for this is modest, but the optionality value is enormous.

Quality or state in which choice or discretion is allowed.
Some offices do not follow the corporate procedure, due to a culture of optionality.

Source: en.wiktionary.org

Related terms

Examples

Although arguments can be made for Mongo having a more durable competitive advantage owing to their dominance of document-oriented database market, Elastic dominates the search market and has more optionality in terms of potential use-cases. Source: Internet

As supply expands, this should also promote the establishment of a liquid LNG spot market allowing for further indexation optionality. Source: Internet

“There’s huge optionality there to still play around with mixes and zoning to make it the place that it needs to be based on future demand, which is one of the reasons why I remain optimistic,” Morgan told the press. Source: Internet

Impact on Procurement: There is a need for explicit shared service models with less optionality than in the past, and trust executives having to commit to testing services against national solutions, with greater systems integration. Source: Internet

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