Popular in Grammar & Usage See All How to Use Em Dashes (—), En Dashes (–) , and Hyphens (-) 'Canceled' or 'cancelled'? Why is '-ed' sometimes pronounced at the end of a word? What's the difference between 'fascism' and 'socialism'?
— stock option : an option giving the optionee the right to purchase a specified number of shares of stock from a corporation at a specified price at or within a specified time see also incentive stock option in this entry 4 : a right of an insured to choose the form in which vari...
call option- an option to buy put option- an option to sell 2.stock option- a benefit given by a company to an employee in the form of an option to buy stock in the company at a discount or at a fixed price; "stock options are not much use as an incentive if the price at whic...
There are two types of stock options: puts and calls. A call grants its owner to purchase stock (called underlying shares) for a specified exercise price (also known as a striking price or exercise price) on or before the expiration date of the contract. In a sense, a call is similar ...
A statutory stock option that allows an employee to purchase stock of the employer below current market price. Although the grant or exercise of such an option results in no income for the "regular" tax, the exercise of an incentive option creates income for the minimum tax. If the taxpayer...
Tax Court Holds that Exercise of Stock Option Through a Margin Account Loan Is Taxable.The article discusses the taxation issue regarding the exercise of stock option through a margin account loan. It states the issue of taxpayer Jean-Remy Facq who entered a margin account agreement to facilitate...
Sign up with one click: Facebook Twitter Google Share on Facebook optionee (ˌɒpʃənˈiː) n (Banking & Finance)financethe holder of a financial option to buy Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998,...
7 Pairs of Commonly Confused Words Why is '-ed' sometimes pronounced at the end of a word? What's the difference between 'fascism' and 'socialism'? More Commonly Misspelled Words Words You Always Have to Look Up Popular in Wordplay
A non-qualified stock option (NSO) is a type ofemployee stock optionthat allows an employee to purchase company shares at a set price (also known as the grant price) within a specified period. When exercising an NSO, the employee pays ordinary income tax on the difference between the grant...
The employee exercises 5,000 of those options to purchase ABC's stock, which is valued at $15, after a year. Exercising those options will cost $7,000 based on a federal AMT rate of 28%.5However, the employee can reduce the federal tax percentage by holding onto the exercised options ...