This is Part 1 of 5 in a Five Part ISO Series
Definition: Incentive Stock Options (ISOâ™s) are options that meet certain requirements that are eligible for favorable tax benefits.
The main benefit is the ability to convert the bargain element (gain) from regular income to long-term capital gain. In order to take advantage of this tax benefit, the option holder is required to hold the shares after exercise for a specific period of time, exposing them to additional concentration risk. Read more...