Balance Sheet: Accounts, Examples, and Equation

The balance sheet is a type of financial statement that gives a report of the financial activities of a company at a particular point in time during an accounting period; a balance sheet shows a summary of the assets, liabilities, equity, and other financial activities of a company at any accounting period, hence the balance … Read more

What is a nonqualified stock option?

Both the number of shares and the time frame of share purchase are usually predetermined in the nonqualified stock option plan or agreement. These stock options are referred to as nonstatutory stock options by the US Internal Revenue Service (IRS) and are commonly abbreviated as NSO or NQSO. Nonqualified stock options are a ready choice … Read more

Stock Options Vesting

Stock options vesting is basically earning the right to exercise a stock option. Owning a stock option doesn’t mean owning stocks outright. The stock options only give the holder the right to buy or sell the shares of the company at a set price, and on or before a fixed date. Hence, holders of stock … Read more

ISO vs NSO – Which is better?

When it comes to granting or receiving ISO vs NSO, both the granting entity and the receiver thinks about which is better for them. The granting entity will typically want to offer either of the two that is most beneficial to them. So also, the individual to whom the ISO or NSO is granted also … Read more

ISO Stock Options: Tax and Requirements

ISO stock options are corporate benefits that give an employee the right to buy company shares at a discounted rate with a more favorable tax treatment on the profit or income. In this article, we shall look at how ISO stock options work, their characteristics, tax treatment, how they are reported, examples, and their requirements. … Read more

RSU Stock: Vesting, Tax and Meaning

RSU stocks are a type of employee compensation that is taxed when vested or exercised. RSU stands for Restricted Stock Unit and works similarly to a bonus, except that you receive stock units (shares of your company) as opposed to a regular bonus that you receive in cash or on your paycheck. This is a … Read more

Early Exercise of Stock Options

Stock options are a form of equity derivative that gives an investor the right (not obligation) to buy or sell the stock of a company in the future at an agreed-upon price and expiration date. Buying or selling the company stock at the agreed-upon price is what we call exercising stock options which can be … Read more

ISO vs NSO Differences and Similarities

When it comes to compensating employees, companies have the option of either granting their employees stock options or restricted shares. Either of these forms of compensation is geared towards motivating employees and retaining top talents in the company. Here, our focus shall be on ISO vs NSO differences and similarities. Before we discuss the differences … Read more

Exercising Stock Options and Taxes

Exercising stock options, taxes, and when to exercise is very important for you to know before you even agree to sign the agreement letter. Stock options are a form of equity derivative that gives an investor the right (not obligation) to buy or sell the stock of the company in the future at an agreed-upon … Read more

Stock Options for Employees: ESO Explained

There are two main types of stock options, which are the standard exchange-traded stock option and the stock options for employees called the employee stock options (ESO). Over the course of employment, a company can issue stock options to employees. The ESO issued to employees can be exercised at a particular price that is set … Read more