Incentive Stock Options

Incentive Stock Options (ISOs) are a type of employee benefit that allows employees to purchase company shares at a set, often lower, price. If the stock’s value increases over time, employees can buy the shares at the lower price and potentially sell them later for a profit, often with favorable tax treatment. ISOs are designed to motivate employees to contribute to the company's growth, aligning their interests with those of shareholders. Eligibility for tax advantages depends on meeting specific holding periods and other requirements set by tax laws.