Non-Qualified Stock Option - NSO

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.
Investopedia Says... NSOs are simpler and more common than incentive stock options (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 ISOs.

Terms Related Links

Camouflage Compensation
Employee Stock Option - ESO
Employee Stock Purchase Plan - ESPP
Incentive Stock Option - ISO
Internal Revenue Service - IRS
Non-Qualified Deferred Compensation - NQDC
Option Schedule
Overhang
Qualifying Disposition
Vest Fleece

Terms Related Links
Get The Most Out Of Employee Stock Options - These plans can be lucrative for employees - if they know how to avoid unnecessary taxes.

Accounting and Valuing Employee Stock Options - Learn the different accounting and valuation treatments of ESOs, and discover the best ways to incorporate these techniques into your analysis of stock.

The Controversy Over Option Compensations - Learn the good, the bad and the ugly sides of this type of payout.

The Controversy Over Option Expensing - Read up on the debate over whether or not to expense options.

What does the term "stock-for-stock" mean?

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