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Investments glossary

Incentive Stock Options (ISOs)

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Quotes of the day:

All that is gold does not glitter not all those that wander are lost.

— J. R. R. Tolkien

An incentive stock option (ISO) is a company benefit that gives an employee the right to buy stock shares at a discounted price with the added allure of a tax break on the profit. The profit on incentive stock options is taxed at the capital gains rate, not the higher rate for ordinary income.

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