Quiz
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
S
Substantial Risk Of Forfeiture
A tax term that applies when rights to compensation are conditioned upon future services (e.g. working X years for a company) or certain targets (e.g. reaching a goal of performance or stock price). If the condition is not satisfied, the stock is forfeited.

In the context of restricted stock and early-exercise stock options, income is not recognized while the stock is subject to risk of forfeiture (e.g. vesting) unless a Section 83(b) election is filed with the IRS within 30 days of when a grant is received or an option is exercised.

For additional information, see a related FAQ.

Return to list Register Now

Try the new myStockOptions.com Glossary App! Now available for Android and iOS.

Get it on Google Play
The content is provided as an educational resource.
myStockOptions.com shall not be liable for any errors or delays in the content, or any actions taken in reliance thereon.
Copyright © 2000-2018 myStockPlan.com, Inc. U.S. Patent 7,353,200.
Contact editors@mystockoptions.com for licensing information