Qualifying Stock Option

Qualifying stock option

A benefit granted by a corporation that allows employees to purchase shares at a discount price.

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Qualifying Stock Option

A non-tradeable call option giving an employee at a publicly-traded company the right to buy shares in that company for a certain price. Qualifying stock options are often a part of compensation for major and mid-level executives in large publicly-traded companies. If the share price for the company increases, qualifying stock options can be very profitable for the employee. Qualifying stock options have certain rules governing when and how the option can be exercised. They are more commonly called simply stock options.