© 2015 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Non-Qualified Stock Option


A stock option that isn't "qualified" to receive favorable tax treatment, more or less. That is, in a qualified stock option, an employee can buy it out, own the equity, hold it for a year or much more and then get long term gain tax treatment. In a non-qualified option, all gains are ordinary income abuse.