Non-Qualified Stock Option - NSO
Definition of 'Non-Qualified Stock Option - NSO'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. |
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Investopedia explains 'Non-Qualified Stock Option - NSO'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. |
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