However, there is a problem with
stock options that is sometimes overlooked, as was demonstrated in one
of the above examples
of things that can go
wrong: When you exercise nonqualified
stock options — the
type of options ordinarily issued to consultants — federal tax law requires you to pay tax on the difference between the fair market value
of the
stock and the price you paid to exercise the options.
The group consists
of stock character
types — jock, virgin, stoner, brains, and floozy (almost «Scooby - Doo» - ish)-- who expectedly think that nothing will go
wrong.