The Wall Street Journal
Company stock options can be a source of great wealth. They can also be a source of great confusion. All too often, people don’t read statements about how their options work—whether because the explanations seem opaque or there simply aren’t enough hours in the day to squeeze in another chore. And that can lead to big problems, because options come with many complex rules attached—and ignoring them can have serious consequences for people’s portfolios. People can end up facing substantial tax hits, taking on unnecessary risk or even losing the right to exercise the options entirely. Below, financial advisers weigh in on some of the risks and fine print that people frequently overlook.