MLchartDataset catalogue

Incentive stock option

Term · Law · MLC-T-LAW-002556

A type of employee stock option that provides favorable tax treatment under the Internal Revenue Code, specifically Section 422. Employees do not pay ordinary income tax when the option is granted or exercised, only when the shares are sold, and then at capital gains rates if certain holding periods are met. This encourages long-term employee investment in the company.

Table 1. Record
IdentifierMLC-T-LAW-002556
FieldLaw
AbbreviationISO
Record as JSON 
{
  "id": "MLC-T-LAW-002556",
  "term": "Incentive stock option",
  "field": "Law",
  "definition": "A type of employee stock option that provides favorable tax treatment under the Internal Revenue Code, specifically Section 422. Employees do not pay ordinary income tax when the option is granted or exercised, only when the shares are sold, and then at capital gains rates if certain holding periods are met. This encourages long-term employee investment in the company.",
  "abbreviation": "ISO",
  "url": "https://mlchart.com/terminology/law/incentive-stock-option/"
}

Record 2,480 of 5,445 in Law terminology (MLC-0107). Request the full dataset.