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in todays video were covering everything that you need to know about incentive stock options isos now a disclaimer as always we created this video to provide a general overview of tax and financial topics Its always important to docHub out to a tax professional about matters specific to your situation all right so what are stock options stock options are a form of compensation that gives an employee the right to buy shares of company stock for a set price at a future date stock options are usually issued by private companies that plan to go public at a future date and therefore act as an incentive to remain with the company Long Term due to vesting requirements and the potential that the company goes public theyre usually awarded as part of an employees hiring or promotion package employer granted stock options can be incentive stock options isos or non-qualified stock options nsos and their tax treatment does vary now in this video well focus just on isos incentive stock options