Flashcard Set Preview
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| 1 |
Employees tend to invest more in their company’s stock
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than would be warranted from a diversification standpoint.
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| 2 |
Sponsors will sometimes offer stock ownership plans, and this act can
be seen by participants...
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an endorsement of the stock as a good
investment.
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| 3 |
Another factor leading to over-investment in the plan sponsor’s stock is the behavioral characteristic...
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familiarity.
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| 4 |
Individual investors tend to invest in stocks with which they are
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comfortable (i.e., they are familiar with).
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