ISOs

ISOs
USA
incentive stock option, Also known as ISOs.
A type of stock option that can be granted only to employees and can qualify as "statutory stock options" under the Internal Revenue Code (IRC) to receive tax-favorable treatment. If qualified, ISOs are not subject to ordinary income taxes at grant or exercise. Instead, only the profit made on any sale of the underlying shares is taxed, at prevailing long-term capital-gains rates (capital gains tax). Under certain circumstances, the holder of an ISO may also be subject to alternative minimum tax in the year the ISO is exercised.
To qualify, an ISO must satisfy the requirements of Section 422 of the IRC, including a requirement that the ISO be issued pursuant to a qualifying, stockholder-approved plan. In addition, to be entitled to tax-favorable treatment, the holder of an ISO must hold the underlying shares until the later of one year from the date of exercise or two years from the date of grant of the option.
For more information about incentive stock options and other types of stock options and equity compensation, see Practice Note, Stock Options and Other Equity Compensation (www.practicallaw.com/0-501-9297).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • isos — isos·po·ra; isos·ta·sist; isos·ta·sy; isos·ter·ism; isos·ce·les; isos·ta·cy; …   English syllables

  • ISOS — invitation to submit outline solutions (ISOS), a stage of the competitive dialogue process. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • ISOS — Das Inventar der schützenswerten Ortsbilder der Schweiz (kurz ISOS) ist eine die gesamte Schweiz abdeckende Bestandsaufnahme im Auftrag des Bundesamts für Kultur. Es stützt sich auf das Bundesgesetz über den Natur und Heimatschutz und wird auf… …   Deutsch Wikipedia

  • Isos, batalla de — (333 BC). Batalla librada en el llano de Isos, cerca del golfo de Iskandar (en el sur de la actual Turquía), en la que Alejandro Magno derrotó a Darío III, último rey de la dinastía aqueménida. Se dice que los macedonios perdieron solo 450… …   Enciclopedia Universal

  • isos — (греч.) равный …   Словарь ботанических терминов

  • ISOS — International Southern Ocean Studies (Academic & Science » Ocean Science) …   Abbreviations dictionary

  • isos·ce·les triangle — /aıˈsɑːsəˌliːz / noun, pl ⋯ angles [count] mathematics : a triangle in which two sides have the same length …   Useful english dictionary

  • isospora — isos·po·ra …   English syllables

  • isostacy — isos·ta·cy …   English syllables

  • isostasy — isos·ta·sy …   English syllables

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”