Stock Options: ISO vs. NSO

Stock options, such as the Incentive Stock Option (ISO) and the Non-Qualified Stock Option (NSO), are an important tool to incentivize employees, contractors, and consultants hired by a startup to work at their top capacity. These stock options provide workers with the right and opportunity to purchase shares in the future at the (theoretically) lower price that is set at the moment the stock is granted. Of course, the assumption here is that the company’s…