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 ?
Although both of qualified stock options and nonqualified stock options are able to recognized as compensation expenses in financial accounting after May 1st 2006, under this revision of taxation for stock options, only grantors of nonqualified stock options are able to include for stock option expense for taxation (Corporation Tax Act 54).
And, as for qualified stock options, even if compensation expenses were recognized for the reporting purpose, those expenses will not be tax-deductible.
As for income tax for employees, it is necessary to distinguish into three categories, qualified stock options, non-transferable non-qualified stock options, and transferable nonqualified stock options.

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