Business, Legal & Accounting Glossary
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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This glossary post was last updated: 20th November, 2021 | 0 Views.