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Introduction to Investing in Your Company Stock

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Although it's convenient and loyal, be careful with how much you invest in your company's stock. You may be exposed to too much risk.

What you will learn

  • When Company Loyalty Goes Too Far
  • How Much of Your Company's Stock Do You Own?
  • How Much of Your Company's Stock Is Too Much?

What do you know?

Introduction to Investing in Your Company Stock

You always root for the home team. Or you only buy cars that are manufactured in the United States. Or you’d pass up World Series tickets for your nephew’s third birthday party, because family is family.

Loyalty is powerful. But when it comes to investing, loyalty should have its limits, especially when it comes to investing in the stock of the company that you work for.

Here’s why it may be a bad idea to invest too much in your company’s stock, how to figure out how much of your company’s stock you already own, and how to prevent your portfolio from becoming too dependent on your company’s stock.