26
Apr

Understanding Incentive and Non-Qualified Stock Options
By Colleen Weber, CFP®, CPA
Have you ever wanted to own your own company—but without the hassle of starting, building up, and managing that company? Well, if your employer offers stock options as part of their benefits package, this dream could become a reality. Many employers offer stock options to their employees as a way of fostering a greater sense of ownership and encouraging long-term commitment. But knowing what types of stock options are available and what to invest in can be a little overwhelming. In this article, I will outline the two common types of stock options offered to employees: incentive stock options (ISOs) and non-qualified stock options (NSOs).
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