Why You Should Think Twice Before Buying Your Company’s Stock
Getty Images/Andy Kropa
Buying stock in your company seems like a logical investment at face value. What better way is there to show the higher-ups not only your loyalty but also your willingness to take a bet on them?
The problem is that you’re only making yourself more financially vulnerable in the process.
Their stories should serve as a cautionary tale, and yet t
Most experts recommend investing about half that much, if any, into employer stock.
Think of it this way. If you work for a company, you are basically already an investor there. You are taking a risk on the fact that they’ll succeed and you’ll be gainfully employed for the long haul. If they go under, you will lose your income and, in some cases, your benefits, too.
Moshe Milevksy, a has long advised individual investors against this path. He recently the wiser option would be to steer their stock choices in the opposite direction of their industry altogether (more specifically, in “