How might employee stock options be managed?

Are You Putting Too Much Stock in Your Company?

With major Enron and Worldcom trials completed, stories of employees losing some or all their retirement income are back in the news. Now is a good time to ask yourself if you hold too much of your retirement nest egg in your employer’s stock.

FINRA issued an Alert related to this issue because it is concerned that employees with the opportunity to invest in company stock may be concentrating too much of their retirement savings in a single security. FINRA is particularly concerned about employees investing all or most of their 401(k) assets in their company’s stock. If, and when, the stock takes a beating, so will your retirement savings.

Resources

For additional information on saving for retirement, read FINRA’s Smart 401(k) Investing.

This information on Stock Options is © 2005 FINRA. All rights reserved. To find out more about Stock Options at FINRA, click here.

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