In general, it's not a great idea, from a risk perspective, to hold a large amount of company stock. You're already dependent on the company for your income via a paycheck. If the company has a downturn and lays off a bunch of people, including you, there's a good chance the value of the stock will also drop in that same downturn. So by holding company stock you are doubling up on the downside risk. Because both of these things are largely out of your hands the general wisdom goes, it's best to sell company stock as soon as you can.
Spylock99 t1_ja9lxl6 wrote
Reply to Strategy for dealing with vested stocks over the next 3 years by ArtaxIsAlive
In general, it's not a great idea, from a risk perspective, to hold a large amount of company stock. You're already dependent on the company for your income via a paycheck. If the company has a downturn and lays off a bunch of people, including you, there's a good chance the value of the stock will also drop in that same downturn. So by holding company stock you are doubling up on the downside risk. Because both of these things are largely out of your hands the general wisdom goes, it's best to sell company stock as soon as you can.