incentive stock option
A term to know.
An option to purchase stock that is untaxed when granted or exercised under Sections 421 and 422. Gains from the stock option are only taxed when they are sold, at a capital gains rate. However, when these options are exercised, the difference between the purchase price and the stock's fair market value is a tax preference for AMT purposes.
Synonyms:
incentive stock options, qualified stock option, qualified stock options
Synonyms list
(a comma-separated list)
incentive stock options, qualified stock option, qualified stock options