Overview of Incentive Stock Options (ISO’s), Part 1: 5 Part ISO Series

This is Part 1 of 5 in a Five Part ISO Series

Definition: Incentive Stock Options (ISO’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...