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.
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