CFP

By Investopedia AAA

Stock Plans - Introduction

Variants on equity based compensation, stock plans entail the grant of shares (or some accounting measure thereof) of a publicly traded company's stock rather than an option to acquire them. A separate section in our guide takes a look at incentive stock options (ISOs) and non-qualified stock options (NQSOs).

Because these are all a type of non-qualified plan, any realized gains are included in gross income only when the recipient has unfettered access to the shares or units (e.g. substantial risk of forfeiture no longer exists as the shares have been constructively received). This section discusses the basic types of arrangements, including: restricted stock, phantom stock, stock appreciation rights (SARs) and employee stock purchase plans (ESPP). Tax treatment and application of such plans are considered as well.


Restricted and Phantom Stock Plans
Related Articles
  1. Several things factor into the salary of a financial advisor. Here's a look.
    Investing Basics

    How Much Does A Financial Advisor Earn?

  2. With a long list of risks, losses associated with foreign exchange trading may be greater than initially expected. Here are the top 5 forex risks to avoid.
    Economics

    Top 5 Forex Risks Traders Should Consider

  3. ISAs are financial instruments that allow students to raise funds to pay for their degrees by selling shares in their future earnings.
    Investing Basics

    Funding Higher Education With An ISA

  4. Top Ways to protect your purchases from credit card hackers or security breaches.
    Credit & Loans

    7 Ways To Protect Against Credit Card ...

  5. The Internal Revenue Service's new 2015 contribution limits for tax-deferred savings plans are higher; here's what you and your clients should know.
    Investing Basics

    New 2015 Contribution Limits: Advisors ...

Trading Center