Course 207: Investing in Your Company's Stock
How Much Do You Own?
In this course
1 Introduction
2 When Loyalty Goes Too Far
3 How Much Do You Own?
4 How Much Is Too Much?
5 What If I Have Too Much?

Your company's stock may appear in a variety of different places and take a variety of different forms:

  • In your employer-sponsored retirement plan. Here, consider not only your purchases, but also your company match, if that match is made in company stock.
  • In the form of vested stock options, which allow you to buy more of the company's stock.
  • In your taxable accounts, either directly or through mutual funds, if your company's stock is publicly traded.

To see just how much of your company's stock you own, you'll need to determine what you own directly and what you own indirectly via your mutual funds. You could scour annual and semiannual reports for that information, then do the math to find out how much of your company's stock you actually own.

An alternative for Morningstar.com Premium Members is to enter their portfolios in Morningstar.com's Portfolio Manager and click on the "X-Ray" tab. Then, take a look at the Stock Intersection report--that will give you an idea of how much of your overall portfolio is dedicated to your company's stock. You may be surprised to find that your mutual funds own your company's stock, too. (Nonmembers can sign up for a free trial of Morningstar.com's Premium service.)

Next: How Much Is Too Much? >>


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