Lets say I own a stock for a certain company. Then all of a sudden I end up working for this company. Bad? Anything to watch out for?
2007-01-25 19:35:25 · 8 answers · asked by joshuademex 1 in Business & Finance ➔ Investing
pay attention - if the company just starts doing really badly. you'll probably want to dump that stock.
2007-01-25 19:41:53 · answer #1 · answered by Smiddy 5 · 0⤊ 0⤋
be careful about thinking that you can determine the merits of the stock by working at the company. you could work in one division that is kicking butt but not understand that as a % of revs or earnings (contribution margin) it may be very small...so the company could still blow up despite the fact that you and your buds in that division are doing well. seen it many many times. thats what you can't rely on people who work at a company telling you how the stock will perform. besides, most people do not understand equity valuation as it is.
2007-01-26 06:08:56 · answer #2 · answered by keepingitgoing 2 · 1⤊ 0⤋
yea if the company goes down so does your stock you should only have about 10% of that companies stock you need to sell and diversify your portfolio
2007-01-29 23:11:49 · answer #3 · answered by joey g 1 · 0⤊ 0⤋
only if you're sufficiently incompetent at your job as to seriously damage t he company's earnings. most likely nothing good or bad about it, just now you have more "invested" in that company, both your investments and your livelihood, so if the former is a big part of your assets, might be smarter to diversify a bit
2007-01-26 08:37:24 · answer #4 · answered by jim06744 5 · 0⤊ 0⤋
If you own more than 5% of the company or are a company officer you need to register with the S.E.C.
2007-01-26 03:42:25 · answer #5 · answered by Nate H 2 · 0⤊ 0⤋
NO way! now you know exactly where your money is going!
by seeing what the biz does inside you can make realistic projections on how thier stock will perform.
2007-01-26 03:43:53 · answer #6 · answered by ? 5 · 0⤊ 0⤋
thats fine, just declare the stock on your initial holdings statement and verify that you don't know any non public information when you go to sell the stock.
2007-01-26 03:46:00 · answer #7 · answered by emetro03 2 · 0⤊ 0⤋
no. its good. now you'll have inside info. many places offer employee stock purchase plans so its not really a conflict of interest.
2007-01-26 03:42:17 · answer #8 · answered by anonymous 6 · 0⤊ 0⤋