Legal Definitions - ISO

Definition: ISO is an abbreviation that can have two meanings:

1. Incentive stock option: This is a type of stock option that is given to employees as a form of compensation. It allows them to purchase company stock at a discounted price, which can be a valuable benefit. For example, if an employee is given an incentive stock option to buy 100 shares of company stock at $10 per share, and the stock price later rises to $20 per share, the employee can exercise their option and buy the shares for $10 each, then sell them for $20 each, making a profit of $1,000.
2. Insurance Services Office: This is a company that provides data, analytics, and other services to insurance companies. For example, an insurance company might use ISO's data to help determine the risk of insuring a particular property or person.

Both of these definitions are important in different contexts. Incentive stock options are a way for companies to reward and retain employees, while Insurance Services Office provides valuable information to insurance companies to help them make informed decisions.