Incentive Stock Option
/ɪnˈsɛntɪv stɒk ˈɒpʃən/
Definitions
- (n.) A stock option granted to employees, allowing purchase of company stock at a favorable price with tax advantages if certain conditions are met.
The employee exercised her incentive stock options to buy shares at the predetermined price.
Forms
- incentive stock option
- incentive stock options
Related terms
See also
Commentary
Incentive stock options offer tax benefits distinct from non-qualified options, requiring careful adherence to statutory rules to maintain favorable tax treatment.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.