Question: Should I buy stock in a company I wish to work for?

I was thinking about buying stock in a company I want to work for so that I could perhaps attend the AGM and be well researched in the company before an interview. I have been looking the available investor information on a stock broker website and it seems like it would be a good time to invest in any case. Whats peoples opinion on this, would there be any real benefits?

Answer:

Today in the world of employee retirement plans, many people who work for publicly traded companies are being offered the chance to purchase their company's stock.
A lot of employees choose this option, but it has benefits and drawbacks that differ from investing elsewhere.
Read on to find out what you can expect if you invest in the company that employs you.
One of the biggest reasons employees choose to invest in company stock is that because they work for the company, they believe they have a more detailed knowledge about the strengths or weaknesses of its business model.
This means that in some cases, they should be able to make better judgments about the overall valuation of the business and how sound it is financially.
A second rationale for investing in company stock is that employees receive some form of ownership of the company they work for.
This increases the loyalty that the employee has to his or her employer by giving providing a chance to participate in the profits as the company grows.
A third reason for purchasing company stock is that some companies allow employees to purchase shares at a discount in relation to the current market price of the stock.

I would wait until you are hired. Then you may be offered stock options, and get the stock for much less than on the open market.

Michael McDonald
www.eyeintheskyscreener.com

You can get all the info you need about the company, from the library.

If you want to buy stock, wait until after you are hired, and you may be eligible for a staff discount to get the stock at a discount.

(It might be a good question to ask during the job interview - to ask about what the options are for buying stock in the company from your monthly salary)..