If an NQSO has a readily ascertainable value, an employee recognizes income on the grant date.

Question

Quizplus · Accepted Answer

If an NQSO (non-qualified stock option) has a readily ascertainable value, such as being publicly traded, then the employee recognizes income on the grant date, which is the day the option is awarded. This income is equal to the difference between the option price and the fair market value of the stock at the time of grant.

If an NQSO Has a Readily Ascertainable Value, an Employee