Incentive Stock Option (ISO) defined: Incentive Stock Option (ISO) is a type of employee stock option with a tax benefit, when you exercise, of not having to pay ordinary income tax. Instead, the options are taxed at a capital gains rate.
Above is a definition for “Incentive Stock Option (ISO)” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.
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