stock option

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stock option

n. the right to purchase stock in the future at a price set at the time the option is granted (by sale or as compensation by the corporation). To actually obtain the shares of stock the owner of the option must "exercise" the option by paying the agreed upon price and requesting issuance of the shares. (See: stock, share, option)

References in periodicals archive ?
In case of restricted stock type stock option, even if it is not qualified stock option for preferential treatment for tax purpose, still tax will be imposed when the stock option is exercised, not at the grant date.
The tax implications are different for qualified stock options, also known as incentive stock options (ISOs).
For many employers, however, it may have more beneficial tax consequences than a qualified stock option and still generate an acceptable incentive plan for their employees.

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