Nonqualified Stock Options - NSOs

What does it mean?
A type of employee stock option where you pay ordinary income tax on the difference between the grant price and the price at which you exercise the option.

In Other Words...
NSOs are simpler and more common than ISOs.

They're called non-qualified stock options because they don't meet all of the requirements of the Internal Revenue Code to be qualified as incentive stock options.

Related Links
MyStockOptions.com - the most extensive stock option site out there. Includes calculators, articles, discussion boards and more.

Related Terms
Employee Stock Option (ESO) | Incentive Stock Option (ISO)

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