Company Stocks
Many organizations encourage employees to purchase company stock. How can a company promote stock ownership? What payback is there for the company when employees become shareholders?
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Most organizations encourage employees to buy stock as an added employee benefit. The company offers stock to employees at a reduced rate or under special circumstances. As employees become ...
Solution Summary
This solution discusses how companies can promote stock ownership by employees. I also discuss the advantages and paybacks for employees that become shareholders.
Risks in Common Stocks
Select a portfolio of common stocks in five companies whose stock is traded on the New York Stock Exchange (NYSE). Base your selection of stocks on your own personal willingness to take risks. Look up the beta of each company. Using equal weights, compute the portfolio beta, showing your work. Discuss how the portfolio beta compares to your own willingness to take risks. Discuss whether you would rather hold an individual stock or a portfolio of stocks.
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