Qualified Stock Option A type of security that receives more favorable tax treatment than a nonqualified stock option, but also requires the holder to incur greater risk by holding onto the instrument for a longer period of time to receive favorable tax treatment. Home Resources Startup Law Dictionary Qualified Stock Option Return to Glossary Need legal help? Schedule a free consultation with a world-class startup attorney on LawTrades. LET'S CHAT Roy G. Business Attorney Heather N. Business Attorney Jared S. Business Attorney Tell us about your project We'll connect you with a vetted attorney in just a few minutes. Trusted by top companies like :