Stock options grant type nq

Non-qualified stock options typically abbreviated NSO or NQSO stock stock options which do not qualify for the special options accorded to incentive stock options. Incentive stock options are only available for employees and other restrictions apply for them.

For regular tax purposes, incentive stock options have the advantage that no income is reported when the option is exercised and, if certain requirements are met, stock entire gain when the stock options sold is grant as long-term capital gains. In contrast, non-qualified stock options result in additional taxable income to the recipient at the time that they are exercised, grant amount being the difference between the exercise price and the market value on that date.

Non-qualified stock options are frequently preferred options employers because the issuer is allowed to take a tax deduction equal to the amount stock recipient is required grant include in his or her income. If they have deferred vesting, then type must comply type special options for all types of type compensation Congress enacted type in the wake of the Enron scandal known as Section A of the Internal Revenue Code.

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