Incentive Stock Option - ISO
外汇网2021-06-19 13:46:33
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A type of employee stock option with a tax benefit, when you exercise, of not having to pay ordinary income tax. Instead, the options are taxed at a capital gains rate.
Although ISOs have more favorable tax treatment than non-qualified stock options (NSOs), they also require the holder to take on more risk by having to hold onto the stock for a longer period of time in order to receive the better tax treatment. Also, numerous requirements must be met in order to qualify as an ISO.
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