non-qualified stock option

Definition

NSO. A type of employee stock option which is less advantageous for the employer from a tax standpoint than an incentive stock option (ISO), but which is less restrictive and generally easier to set up and administer.

Use this term in a sentence

You may want to try and take on a non-qualified stock option but need to know that it will be risky.

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It was a non-qualified stock option and that was a little less advantageous for us and we were happy with it.

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If you are going to try and invest in a non-qualified stock option you need to make sure you are ready for the swings.

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non-statutory stock option Employee Stock Ownership Plan