Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

nonqualified stock option

Read a random definition: confirmation of sale

A quick definition of nonqualified stock option:

A nonqualified stock option is a type of stock option that is not subject to certain tax rules and regulations. It allows an employee to purchase company stock at a predetermined price, regardless of the current market value. This type of option is different from a qualified stock option, which has specific tax advantages and restrictions.

A more thorough explanation:

A nonqualified stock option is a type of stock option that is not eligible for special tax treatment under the Internal Revenue Code. It is also known as a nonstatutory stock option.

For example, if an employee is granted a nonqualified stock option to purchase 1,000 shares of their company's stock at $10 per share, and the stock price rises to $20 per share, the employee can exercise the option and purchase the shares for $10,000. They can then sell the shares for $20,000, resulting in a $10,000 profit.

This type of stock option is often used as a form of compensation for employees, but it does not have the same tax advantages as an incentive stock option (ISO). With a nonqualified stock option, the employee must pay taxes on the difference between the exercise price and the fair market value of the stock at the time of exercise.

nonqualified pension plan | non quieta movere

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
LSD+ is ad-free, with DMs, discounts, case briefs & more.