Qualifying stock option

qualifying stock option
privilege granted to an employee of a corporation that permits the purchase, for a special price, of shares of its capital stock , under conditions sustained in the Internal Revenue Code.

Qualifying stock option
A benefit granted by a corporation that allows employees to purchase shares at a discount price.

Nonqualifying stock option
An employee stock option hat does not satisfy IRS qualifying rules and therefore is liable for taxation upon exercise .
Nonrated ...

An annuity that does not fall under an IRS-approved pension plan. Contributions are made with after-tax dollars, but earnings can accumulate tax-deferred until withdrawal.
Nonqualifying stock option ...

INCENTIVE STOCK OPTION (ISO) An equity-type compensation plan under which qualifying stock options are free of tax at the date of grant and the date of exercise but are taxed when sold. US system.

Corporate executives may be granted incentive stock options (ISOs), also called qualifying stock options. These options aren't taxed when they're granted or exercised, but only when the underlying shares are sold.

Non-Qualifying - Stock Option, employee stock option failing to meet Internal Revenue Service criteria for Qualifying Stock Options.

See also: Saving, Expense, Tax-Deferred, Employee contribution, Qualified plan