Soldato
Can someone confirm what the rules are in respect to purchasing shares in your employing company? Is it allowed / would they ever bother to find out anyway?
Rules on purchasing shares in employer
- Thread starter pioneer2000
- Start date
It's generally fine as a lot of big companies even give their staff share options and shows you have confidence in the company you work for and perhaps would try a little bit harder to do the best for the company.
The only thing to watch out for is insider dealing.
Let's say you know the company you work for is about to win a massive order which would make their share price shoot up. If you then bought shares knowing this you could be prosecuted as many employees have. They seem to be having a major crackdown on this atm.
http://www.google.co.uk/#q=insider+...hAfOttyNBw&ved=0CAcQpwUoAQ&fp=562f11251e4d6c9
EDIT: check your contract of employment though just to make sure they don't allow it though.
The only thing to watch out for is insider dealing.
Let's say you know the company you work for is about to win a massive order which would make their share price shoot up. If you then bought shares knowing this you could be prosecuted as many employees have. They seem to be having a major crackdown on this atm.
http://www.google.co.uk/#q=insider+...hAfOttyNBw&ved=0CAcQpwUoAQ&fp=562f11251e4d6c9
EDIT: check your contract of employment though just to make sure they don't allow it though.
Last edited:
Yup, it's certainly allowed. Ask HR if there is a share purchase plan, where I work if you buy them through the company you get them at a discount too which is a good incentive.
Like Greebo said though be careful with insider trading, if you have insight into the company performance you may be what my company calls a "Covered Position" like I am and have set trading windows and blackouts coinciding with when the quarterly results are reported to the market. This often also extends to family too. Check your company policy on trading.
Like Greebo said though be careful with insider trading, if you have insight into the company performance you may be what my company calls a "Covered Position" like I am and have set trading windows and blackouts coinciding with when the quarterly results are reported to the market. This often also extends to family too. Check your company policy on trading.
Last edited:
Large employers often have AESOP schemes.
You don't need to worry about insider dealing though. If you work for a FS firm, you'll probably need to get purchases pre approved, and they should have various compliance checks in place / Chinese walls etc.
You don't need to worry about insider dealing though. If you work for a FS firm, you'll probably need to get purchases pre approved, and they should have various compliance checks in place / Chinese walls etc.
Depends on his position. Certainly a few times in my life I have known information which would have made me a quick 20% gain if I had bought shares when I knew it before the public did.
Certainly the lower down the ladder you are, the less likely you are to be affected.