nonequity option

Non-Equity Option

An option contract on anything other than stock. Common examples of NEOs include commodities, currencies, indices, bonds, and even other options.

nonequity option

An option for which the underlying asset is anything other than stock. Nonequity options include commodity options, currency options, debt options, and stock index options. Compare equity option. See also Section 1256 contracts.
References in periodicals archive ?
988 transaction if it represents a regulated futures contract or nonequity option that would be marked to market under Sec.
1256(g)(3), a nonequity option includes any listed option that is not an equity option.
Consequently, the option should not constitute a nonequity option.
At issue was whether the option would be viewed as a listed nonequity option.
1256 contracts, which include regulated futures contracts, foreign currency contracts, nonequity options, dealer equity options, and dealer securities futures contracts.
1256, even if such options are listed and otherwise would be nonequity options under Sec.
The taxpayers further argued that Congress had added other option contracts, such as nonequity options and dealer equity options, to section 1256, thus indicating its intent to include foreign currency options.
1256, certain contracts (such as regulated futures contracts, foreign currency contracts, nonequity options and dealer equity options) are marked to market, and any capital gain or loss is treated as 60% long-term and 40% short-term.
1256 contains the mark-to-market rules relating to certain regulated futures contracts, foreign currency contracts, nonequity options and dealer equity options.