You would think that after the horror stories about Enron employees who lost their job and their retirement savings more employees would diversify out of their own company’s stock. Not so, according to a recent survey by Hewitt Associates, a benefits consulting firm. It found that at the end of 2002 some 28% of all 401k plan money was invested […]
Month: November 2003
What do stock traders and lottery ticket buyers have in common?
Why do some investors trade stock frequently in the hope of getting rich, especially when it is easy to see that short-term trading is a losing proposition? The answer may be in comparing the behavior of frequent traders to that of buyers of lottery tickets, suggests Meir Statman, finance professor at Santa Clara University. A few years ago Statman coined […]
