Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
employee stock option
See STOCK OPTION (2)
incentive stock option
See STOCK OPTION (2).
nonqualified stock option
See STOCK OPTION.
nonqualifxed stock option
A stock-option plan that does not receive capital-gains tax treatment, thus allowing a person to buy stock for a period (often ten years) at or below the market price.
qualified stock option
A now-rare stockoption plan that allows a person to buy stock for a period (often five years) at the market price, the stock being subject to capital-gains tax treatment.
qualified stock option.
See STOCK OPTION
stock option
1 An option to buy or sell a specific quantity of stock at a designated price for a specified period regardless of shifts in market value during the period. 2. An option that allows a corporate employee to buy shares of corporate stock at a fixed price or within a fixed period. ( Such an option is usu. granted as a form of compensation and can qualify for special tax treatment under the Internal Revenue Code. - Also termed (in sense 2) employee stock option; incentive stock option (ISO).