Why are ISO stock options termed "statutory"? Because they are defined by some sort of statute? If so, then what is the statute?
Similarly, why are ISOs termed "incentive" stock options whereas NQOs are not. To me, it seems as if both would serve as incentives for workers. Is this just a historical thing? Or is there some sort of intuition here I'm missing?
Finally, why are NQOs termed "non-qualified". What are they 'not qualified' in regards to?
I'm trying to get some insight on stock option naming, so I can better remember the different types.