Can heavy investment in company stock be rationalized

Reference no: EM131477910

Question: Why would investing in own-company stock present greater risk than investing in a diversified fund? Despite this higher risk, many employees hold much of their 401(k) plan in company stock. Why does this phenomenon exist? Can heavy investment in company stock be rationalized? If so, how?

Reference no: EM131477910

Questions Cloud

Argue for or against an established theory involving mergers : Argue for or against an established theory involving Mergers and Acquisitions or Financial Ratio Analysis. 2 pages of full content (not including abstract).

Fired horizontally with an initial speed : A bullet is fired horizontally with an initial speed of 200 m/s at a height of 1m above the ground. How long will it take the bullet to hit the ground?

Describe your familys history of social mobility : Explain the role of race and gender in the discussion on mobility and social status.Predict your own social mobility and if you have children.

Particular station frequency by adjusting capacitance : A radio can be tuned into a particular station frequency by adjusting the capacitance in an L-C circuit.

Can heavy investment in company stock be rationalized : Why would investing in own-company stock present greater risk than investing in a diversified fund? Despite this higher risk, many employees hold.

Describe an organization for which you work : Describe and evaluate how Pfizer is allowing employees to be more productive with its PfizerWorks. Analyze an organization for which you work.

What is the time constant of the circuit : What is the time constant of the circuit? What is the value of the current after 5 ms when the switch is turned on?

Amount of ammonia-based fertilizer : The number of people this planet can support is largely determined by the amount of ammonia-based fertilizer that can be produced.

Discuss what the timbre of the synth adds to the sound : Use the internet to find another song that uses a Moog synth (you may also pick a track that uses a different kind of synth.

User Account

All Pages