What are ISO’s? Transcript:
Hi, I’m Tom Lo with Vested Financial Planning. I’m here today to help you understand what are ISOs. ISOs or Incentive Stock Options are simply the right, but not the obligation to buy stock in your company. The key thing to understand about ISOs is their tax treatment. When you exercise ISOs, you don’t have to pay any ordinary income tax. That’s different from other forms of equity comp, like Non-Qualified Stock Options or RSUs. However, you may have to pay alternative minimum tax or AMT. If you want to learn more, come to my website at vestedfinancialplanning.com. Thank you very much.