Bargain Element

Business, Legal & Accounting Glossary

Definition: Bargain Element

Bargain Element

Full Definition of Bargain Element

The difference between the strike price of a stock option and the market price of the underlying stock when the option is exercised, times the number of shares purchased. The bargain element is not treated as capital gains, but rather as income received from the employer who granted the stock option, and is taxed differently depending on whether the stock option is a non-qualified stock option or an incentive stock option.

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Modern Language Association (MLA):
Bargain Element. Payroll & Accounting Heaven Ltd. November 29, 2021
Chicago Manual of Style (CMS):
Bargain Element. Payroll & Accounting Heaven Ltd. (accessed: November 29, 2021).
American Psychological Association (APA):
Bargain Element. Retrieved November 29, 2021, from website:

Definition Sources

Definitions for Bargain Element are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.