### Question
What is the definition of incentive stock option?


### Answer
The definition of **incentive stock option** is as follows in *26 U.S.C. § 422*:

> an option granted to an individual for any reason connected with his employment by a corporation, if granted by the employer corporation or its parent or subsidiary corporation, to purchase stock of any of such corporations, but only if—


(1) the option is granted pursuant to a plan which includes the aggregate number of shares which may be issued under options and the employees (or class of employees) eligible to receive options, and which is approved by the stockholders of the granting corporation within 12 months before or after the date such plan is adopted

#### Citation:
  - *26 U.S.C. § 422*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART II-CERTAIN STOCK OPTIONS**

