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Nonqualified Stock Option Definition

non-qualified stock option – n : often referred to by its abbreviation (NSO); a type of stock option that is less advantageous for the employer from a tax standpoint than an incentive stock option (ISO), but is less restrictive and generally easier for employers to set up. Unlike ISOs, which can only be granted to a company’s employees, NSOs can be granted to non-employees (e.g., outside directors on a company’s board of directors, or contractors) offshore
– adj : from an American perspective, describing a business entity or activi ty that is based or carried out outside the United States
– v : to outsource a business activity or function (e.g., back-office operations, IT development, call center, manufacturing, etc.) outside the United States

Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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