When it comes to evaluating strategies to exercise your Non-Qualified Stock Options (NQSOs), what is your best plan of attack? Do you: Exercise and sell all your NQSOs immediately, cashing out the full proceeds? Exercise your NQSOs and hold shares of stock, hoping the stock price will go up? Or, leave your NQSOs unexercised and hope the stock price will go up? If you anticipate a higher stock price in the future…
Category: NQSO
Comparing Incentive Stock Options and Non Qualified Stock Options
Non-qualified stock options and incentive stock options are the two types of employee stock options that you may receive as part of your compensation package. While they have some similarities, they also differ, particularly when speaking to how they may be taxed at exercise and upon the final sale of stock.
How to Choose if Offered Restricted Stock Units or Non Qualified Stock Options
Some employers may allow you to choose how you receive your equity compensation. They may allow you to receive it all in NQSOs or all in RSUs or they may allow you to…
4 Key Highlights of Employee Stock Options
Employee stock options are a powerful tool for businesses to provide an incentive for key employees and those who contribute to a company’s success. Stock options give you the right to purchase shares of stock at a predetermined price within a certain period of time...
Understanding the 83(b) Election for Non-Qualified Stock Options
If you have non-qualified stock options, you’ve likely spent time researching when and how you’ll face taxes for them. As a general rule, you will be subject to ordinary income tax on the profit you make when you exercise non-qualified options. Being taxed when you...
10 Things to Know About Non-Qualified Stock Options
Non-qualified stock options (NQSOs) are a common compensation feature provided to employees as part of a compensation package. If you have access to these perks, they give you the opportunity to potentially profit from the rising value of the company’s stock. If you find yourself on the receiving end of NQSOs, you need to understand what non-qualified stock options are and how they work, including how they could impact your income taxes, investment risk, and financial planning goals.
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