BTW, it's amazing how many FReepers actually believe that a company can have an in-house rule that prevents shareholders from freely disposing of vested shares as they see fit.
In other words, Enron and not the SEC regulates the stock market.
Dear wideawake,
"In other words, Enron and not the SEC regulates the stock market."
LOL! Yeah.
I remember seeing this old guy on TV with his 401(K) statement. It had one entry - for Enron shares. Face value at statement date - something like $1.8 million. He was whining that now his entire 401(K) was worthless.
And I'm thinking, you didn't bother to sell a SINGLE SHARE AND BUY SOMETHING ELSE?? WHAT THE HELL DID YOU EXPECT, FOR THE TREES TO GROW TO THE SKY??
And then it occurred to me, yeah, that's what folks think. That trees will grow to the sky.
I've often thought that one regulation that might be worthwhile would be to limit the percentage of company stock folks could have in their 401(K)s. I'm not usually amenable to additional government regulation, but I think that the whole Enron debacle shows that a significant portion of America needs protecting from themselves.
However, instead of something that approaches being sensible or appropriate like some additional reform of 401(K) rules, we get that swansong from the previously unheard-from senior Senator from Maryland, the Sarbanes Oxley Act! What idiocy!
sitetest
"BTW, it's amazing how many FReepers actually believe that a company can have an in-house rule that prevents shareholders from freely disposing of vested shares as they see fit."
Actually, Lay et al. elected to change Enron's plan administrator *just* at the time all this fraud became public.
This caused a freeze in employee accounts at the same time the stock crashed; no hope to escape for employees whose company 401k were locked into Enron stock. Sure the rule is the SEC's, but the *action* was taken by the Enron execs. Indemnifying the execs is like blaming a gun and not the shooter for a murder.
DO the research...
Probably because it's true.
"Enron generally provided a 50 percent match in stock on before-tax contributions, up to a maximum of 6 percent of base pay. But employees couldn't sell any of those shares until they reached the age 50."
Find that restriction in the SEC regulations, or STFU already.