What is another word for incentive stock option?
Pronunciation: [ɪnsˈɛntɪv stˈɒk ˈɒpʃən] (IPA) 
Incentive stock option, commonly abbreviated as ISO, is a type of stock option granted to employees by their employers. ISO allows employees to buy company stock at a discounted price and enjoy tax benefits if they meet certain criteria. Several other words can be used to describe an ISO to make it more understandable. These synonyms include equity incentive plan, employee stock option, restricted stock option, and stock-based compensation. An equity incentive plan offers employees the potential of owning a portion of the company through the option of purchasing stock at a lower price. Employee stock option provides employees with the right to purchase stock in the company where they work. Restricted stock option limits the number of shares that an employee can purchase, while stock-based compensation involves giving employees compensation in the form of company stocks.
