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stock option
(redirected from Incentive stock options)

   Also found in: Legal, Financial, Encyclopedia, Wikipedia 0.01 sec.
stock option
n.
A right to buy or sell specific securities or commodities at a stated price within a specified time.
ThesaurusLegend:  Synonyms Related Words Antonyms
Noun1.stock option - the right to buy or sell a stock at a specified price within a stated period
option - the right to buy or sell property at an agreed price; the right is purchased and if it is not exercised by a stated date the money is forfeited
call option - an option to buy
put option - an option to sell
2.stock option - a benefit given by a company to an employee in the form of an option to buy stock in the company at a discount or at a fixed price; "stock options are not much use as an incentive if the price at which they can be exercised is out of reach"
benefit - financial assistance in time of need


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The tax implications are different for qualified stock options, also known as incentive stock options (ISOs).
Incentive stock options An incentive stock option is a qualified right to purchase stock at a fixed price.
Incentive stock options are commonly used as bonuses or as compensation at an upstart company that needs its cash to fuel growth.
 
 
 
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