incentive stock option

Definition of "incentive stock option"
  1. A type of stock option given by a corporation to its employees and officers as extra pay which has unique tax treatment under the U.S. Internal Revenue Code
How to use "incentive stock option" in a sentence
  1. The corporation offered an incentive stock option plan to attract and retain talented employees.
  2. To provide additional compensation for her work, the officer was given an incentive stock option.
  3. It's beneficial to understand how the tax implications of your incentive stock option can affect your overall compensation.

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