Non-Qualified Stock Options

Term Main definition
Non-Qualified Stock Options

Compensatory stock options that are not eligible to be treated as Incentive Stock Options for federal income tax purposes. Non-Qualified Stock Options are the most common and prevalent form of stock options because the alternative, Incentive Stock Options, have a number of requisite features that most of the options that are granted over the life of a business do not or will not satisfy.  See also ISOs.