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Keep Selling Your Company Stock

[/fusion_text][fusion_text]This is a public service announcement to all executives of public companies. Keep selling your company stock! It’s common for management at these companies to receive part of their compensation in shares of restricted stock (or stock options). From the company’s standpoint this is a way to tie the employee’s financial success to the company’s success.

If you really like your company’s prospects, keep some of the stock for fun (also not a bad idea if your boss wants to see you keep some skin in the game). Just don’t take it too far. If your company is wildly successful, you will do really well no matter what you do with the stock. Your future stock awards will fully vest each year. You will get nice raises and bonuses. Don’t fret about missing out on some gains by selling the stock.

On the flip side, not all public companies turn out to be great investments (see Kodak). When a company struggles, you will lose your 401k match and you won’t get big raises or bonuses. You might have to go find a new job. You don’t want your portfolio to suffer at exactly the same time.

Be diligent. Sell a little bit of your employer’s stock at regular intervals. Don’t worry about getting the timing exactly right. And diversify it into your long-term portfolio strategy.

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Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. ASA gathers its data from sources it considers reliable. However, ASA makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.