Employee Stock Option in content page of articles
Employee stock options are options your employer grants you. Two basic types are:
- Qualified (statutory) stock options
- Nonqualified (nonstatutory) stock options
Two groups of qualified stock options -- also known as statutory stock options -- are:
- Incentive stock options (ISOs)
- Options granted under an employee stock purchase plan
All other employee stock options are nonqualified stock options. These are also known as nonstatutory stock options.