Gary Poster, with essential assists from Galyn Norwood, Phiroon Phihakendr, Jose Quijada, Pavandeep Kalra. For some reason, the notion of buying shares in your own company seems harder to resist than a sale at Nordstrom. Most participants have no idea of the risks they are taking on.
Some plans match contributions only in company stock.
The rising stock market has also played a role, combined with lack of rebalancing. But the most important factor is that many workers simply see the opportunity to load up on company shares as a good deal. And the perception that company stock is safer actually increased between 1997 and 1999. The problem may only intensify. And that number does not reflect the impact of stock options and discount stock-purchase plans, which allow workers to bet even more of their security on their company's future.