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Now is the time to exercise ISOs

Incentive stock options are thought of more favorably than non-qualified stock options because ISOs can create capital gains while NQOs create ordinary income.

Incentive stock options are thought of more favorably than non-qualified stock options because ISOs can create capital gains while NQOs create ordinary income. When employees exercise ISOs, no immediate taxable income is created. By contrast, exercising NQOs creates taxable ordinary income equal to

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