ISOs (Incentive Stock Options)

Incentive Stock Options (ISOs) are a type of employee benefit that grants you the right to buy company stock at a preset price, often lower than market value, for a certain period. If you hold and sell the stock properly, any profit may qualify for favorable tax treatment. ISOs align employee interests with company success, incentivizing long-term growth. However, they also come with specific rules to qualify, and improper handling can lead to taxes or penalties. Essentially, ISOs are a way for employees to participate financially in their company's success with potential tax advantages.