Non-qualified stock option

A stock option is a special kind of contract that gives you the right to buy or sell shares of a company’s stock at a pre-determined price. Non-qualified stock options are a type of stock option that you can get from your employer. It means that you don’t have to pay taxes upfront when you get the option; you just have to pay taxes when you eventually exercise the option (which means you buy the stock at the pre-determined price, and then you can sell it at the market price). But when you do exercise the option, you have to pay taxes on the difference between the pre-determined price and the selling price.