Summary of Investing in Your Company Stock

Owning stock in your own company can be a great motivator. You feel like a stakeholder, and you know that your efforts can come back to reward you over the years.

As with any investment, it’s possible to hold too much of it. This exposes you to risks such as your company’s fortunes heading south. If you are counting on retiring with that stock, then you could find yourself in dire straights—a situation that has happened to employees in some high-profile cases over the years.

This is why it is important to look objectively at the role that your company’s stock plays in your portfolio.