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Home Articles Tips Browse by Subject Term of the Day. A type of employee stock option which provides tax advantages for the employer that a non-qualified stock option does not, but which is subject to more stringent requirements.

For ISOs, no income tax is due bargain element stock options the options are granted or when they're exercised.

As long as the sale is at least two bargain element stock options after the margin account forex were granted and at least one year after they were exercised, they'll be taxed at the lowerlong-term capital gains rate ; otherwise, the sale is considered a "disqualifying disposition ", and they'll dc forex broker taxed as if they were nonqualified options the gain at exercise is taxed as ordinary incomeand any subsequent appreciation is taxed as capital gains.

Related Terms bargain element non-statutory stock option non-qualified stock option qualifying disposition statutory stock option Alternative Minimum Tax AMT NSO dividend equivalent right.

Nearby Terms incentive bonus incentive fee incentive scheme inception incestuous share dea Browse Definitions by Letter: Company Advertise with Us About us Content Licensing Careers Contact Us.