A secondary sale is the sale by an existing stockholder of shares in a private company to a third party that does not occur in connection with an acquisition of the company.
An option grant is a right to acquire a set number of shares of stock of a company at a set price.
Non-qualified Stock Options (NSO) are stock options that, when exercised, result in ordinary income tax on the difference between the exercise price and the fair market value of the underlying shares.
Every stock option has an exercise price, also called the strike price, which is the price at which a share can be bought.
Section 409A of the Internal Revenue Code is a complex and often counterintuitive set of tax rules applicable to deferred compensation.