Play It Safe Investing in Your Company
Investing in the company that you work for is a very common thing in today’s market. Most companies pay their employees bonuses and retirement funds in company stock. Additionally, many employers offer employee stock purchase programs that allow employees to purchase stock at a reduced rate than the general public. A fine line must be walked by those who are privy to information about the company that could affect the value of the stock. If you are a manager in a department that is the first to know about a hot new product that is sure to revolutionize the healthcare industry, you should think twice before you call your investment broker and order him to buy up everything he can. If you do this you might as well hire yourself a securities fraud attorney right away because insider trading is highly against the law. It is also against the law to make claims that will drive up the price of the stock even if they are untrue.
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