Accounting and Tax Considerations in Stock

Document Type

Article

Publication Date

7-1998

Abstract

Tax law changes favoring long-term capital gains have encouraged the use of broad-based as well as executive stock option plans in recent years. Accounting and tax provisions that apply to the two major types of stock option plans, incentive and nonqualified, are important considerations in choosing which plans will best meet the need of particular companies, business units, and individual employees.

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