Investing with Existing Tools and Employee Options

When there is a will, there is a way. You start investing small portion of your money out of your savings account or existing stocks offered by the company. There are many tools available to start your stock market career; recurring account, bonus, company stocks, employee benefits and compensation.

Start with Existing Resources

If you go to work every day at a publicly traded company, then your market research may be better than many professional money managers on BSE and NSE. It’s legal to invest in and trade the stock of your employer as long as you’re acting on information that’s available to the general public. The CEO and executives are regularly rewarded with stock options which are a large part of their compensation packages. Some companies also offer stocks to mid-manager level. They may invest in the company themselves if they see a bright future of increasing earnings. Negotiate your stock options with your company to avail this opportunity in exchange for variables, fringe benefits and other compensations.

Ask from your Company

Why not you? If you wonder why your company makes a big push to maximize sales, cut expenses, and make their numbers at the end of every quarter and at year’s end, it’s probably because they are trying to give stock exchange positive numbers so the stock price can rise or at the very least, not go down. The executives are almost always incentivized to meet expectations because most times their stock options rise with increased value. Become a smart investor by enrolling for intraday trading tips. You can also start by asking your company about your share of stocks as an active employee of the company in the form of bonus. Some companies also offer free stock trading courses to educate their employees who are also their investors.

Go for Stocks

You can start saving 10% of your savings to invest in stocks. Better late than never. Do not become disgruntled executive. You must start on your own if your company does not offer you stock options. As a proactive employee, you can suggest your company that executives and managers can be incentivized to make their individual department budgets and meet their operational numbers so they receive bonuses in the form of stocks. You can suggest them to get them usually delivered through a payout in cash, stock grants, or stock option appreciation.

Win Win Scenario

The company open investors avenue by opening up stocks to employees. Employees become habitual to purchasing stock over a period of time, the company also gets a steady inflow of cash in allocated lot of shares. The employees become more loyal to the company, they not only have a chance to purchase an ownership share in the company, they are free to have a buy agreement over time.

Stock Incentives

Stock incentives are the carrot offered by companies to get the financial numbers that they need. The purpose of publicly traded companies is to increase earnings and decrease yearly expenses to increase valuation of their stock. Big cap companies purpose is to become more efficient, not just create more jobs. Wages are the number one controllable expense for most companies, so it’s frequently one of the first places companies look to cut expense and increase earnings. Job growth only happens when companies are growing. Stock growth of a company infuse funds to expand business. This expansion creates jobs for employees. Stock incentives work for both company and employees.

Employee Responsibility on Stocks

As an employee, the more productive you are, the more you are safeguarded against being laid off or downsized. When you are open to accepting stock options, you also give company a leeway to save additional overheads and use funds on mandatory expenses. As an investor cum employee who owns a stock you want to see the company expanding and creating jobs due to growth. Hiring is a great sign of a company growing. A company going through layoffs is a sign of that it has moved through the growth stage and is not trying to appreciate the stock price by becoming more efficient and increasing earnings. Key employees’ responsibility becomes important for company’s reputation in the market.

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