ISO. A type of employee stock option which provides tax advantages for the employer...
This type of stock option meets certain requirements set up by the Internal Revenue Code. It's available only to employees of a company. With this type of option, income is reported only when the stock is sold, not when the option is received or exercised. If the stock is held long enough, the employee may report long-term capital gains instead of compensation income, which could offer a significant tax savings.
The right to purchase company stock at a specific exercise price over a stated option term. Generally, an ISO entitles you to favorable tax treatment if the acquired shares are held for at least one year from the date of exercise and two years from the grant date. If you adhere to the required holding period, the difference between the sale price and grant price will be taxed at a capital gains rate. However, if you choose to sell off all or a portion of the shares before the expiration of the applicable holding periods, you may recognize ordinary income and will be taxed accordingly. In non-U.S. locations, tax implications may vary; consult your employer or tax advisor.
An employee stock option plan that allows options to be granted or exercised on a tax-deferred basis. All gains on options are taxed only when the holder sells the stock.
An option that has met certain tax requirements entitling the optionee to favorable tax treatment. Such an option is free from regular tax at the date of grant and the date of exercise (when a non-qualified option would become taxable). If two holding period tests are met (two years between grant date and sale date and one year between the exercise date and sale date), the profit on the option qualifies as a long-term capital gain rather than ordinary income. If the holding periods are not met, there has been a "Disqualifying Disposition."
A stock option arrangement giving an employee an opportunity to buy the employer corporation's stock at a fixed price for a fixed period of time. It also can offer some favorable tax treatment if certain conditions are met.
A tax-favored type of employee stock option.
an option granted to corporate executives if the company achieves certain financial goals
A stock option plan that gives an employee the opportunity to buy the employer corporation's stock at a fixed price for a certain period of time, and that offers favorable tax treatment if certain conditions are met.
A statutory stock option that allows an employee to purchase stock of the employer below current market price. No income tax consequences result from the grant or exercise of such an option and, if holding period requirements are met, gain on the eventual sale of thestock is long-term capital gain.
A stock option that may be granted to an employee under tax-favored terms.
Plan created by the Economic Recovery Tax Act of 1981 (ERTA) whereby qualifying options are free of taxes when granted and when exercised. Profits on exercised shares sold are taxed as ordinary income--until 1987, it was subject to capital gains tax if the shares were held at least one year. See: Capital Gain
Incentive stock options (ISO's), are a type of employee stock option that can be granted only to employees and confer a U.S. tax benefit.