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Incentive Stock Option (ISO) |
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Incentive Stock Option (ISO)An Option that has met certain tax requirements entitling the optionee to favorable tax treatment. Such an option is free from regular tax at the date of grant and the date of exercise (when a non-qualified option would become taxable). If two holding period tests are met (two years between grant date and sale date and one year between the exercise date and sale date), the profit on the option qualifies as a long term capital gain rather than ordinary income. If the holding periods are not met, there has been a "disqualifying disposition".Incentive Stock Option (ISO) Similar MatchesMortgage incentivesMortgage incentivesThe lender may offer a discount or fee-free period on buildings insurance, accident and sickness insurance, redundancy insurance, or payment protection insurance. This is often done to encourage you to take up the policy, which you are then fairly likely to keep in the longer term. Other common incentives include a free valuation and money towards solicitor's fees. Incentive stock optionIncentive stock optionA stock option, which specifies a set number of shares at a specified option price extending over a given period, which is free of tax when granted and when exercised. If the share is subsequently sold two years or more after the grant date or one year or more after the transfer to an employee, a reduced capital gains tax liability on profits will apply. Incentive feeIncentive feeCompensation paid to commodities trading advisers or to any practitioner who achieves above-average returns. Sometimes called performance fee. Agency incentive arrangementAgency incentive arrangementA means of compensating the broker of a program trade using benchmark prices for issues to be traded in determining commissions or fees. |
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