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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Non-Qualified Stock Option

Definition:

A stock option that isn't "qualified" to get tax breaks. With a qualified stock option, an employee can buy the option out, own the equity, hold it for a year or longer, and then get long term gain tax treatment (i.e., fewer taxes when they sell).

With a non-qualified option, all's fair for the tax man and you end up paying more taxes