Question: Problems and Applications Q 6 Many workers hold large amounts of stock issued by the firms for which they work. Companies encourage this behaviour because

Problems and Applications Q

6

Many workers hold large amounts of stock issued by the firms for which they work. Companies encourage this behaviour because it gives an incentive for employees to ensure the success of the company.

Why might a person not want to hold stock in the company where they work? Check all that apply.

The employee could lose both a salary and the stock value if the company doesn't perform.

Shareholders are given more work with no pay increase.

It is better to diversify investments.

Problems and Applications Q6 Many workers hold large amounts of stock

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