# Nonstatutory stock option

> Nonstatutory stock option — A stock option that is not an ISO — any grant to a contractor or director, and an ISO's excess over the $100,000 limit. With no readily determinable value at grant, the spread is ordinary income at exercise, as wages for an employee.

Source: https://lopifi.com/glossary/nonstatutory-stock-option
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

---

**What is nonstatutory stock option?** In accounting, nonstatutory stock option means a stock option that is not an ISO — any grant to a contractor or director, and an ISO's excess over the $100,000 limit. With no readily determinable value at grant, the spread is ordinary income at exercise, as wages for an employee.

## Also known as

- NSO
- Nonqualified stock option

## Words this system refuses for it

- ISO
- warrant

- **Category:** Equity & financing
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)