Rookie questions re: stock market

[OdingyNBugs]

Good evening all,
Recent lay-off from a "tech" company after 12 years. During that time, through promotions/raises, I was given stocks. Honestly, never had an interest in the stuff.
With-out going into to much detail, (have signed the NDA, good for a year, ends in Oct), what to do with it. It currently isn't doing that well, hovering at the same $$, +/- here and there. In my brain, insert chuckles as needed, letting it sit isn't accomplishing anything. But haven't the slightest inclination on how to make it "work" for me.

What/where is a good starting point, research area, that I can use to gain better understanding of the market? Basically Stock Market for Dummies type of info....
If you would rather PM info, that would be helpful. Just don't want to lose it, it was/is "free" money to me. Would like to take advantage of this stuff, and not waste it. Free is free right!!

Thank you

[boneil]

A good starting point would be on a brokers website like Etrade, TD Ameritrade, Charles Schwab, Fidelity...... they all have beginners/ education section that will run you through the basics.

[Tfall]

Investors Business Daily is a great place with a ton of information for beginners and experts. They have free trials or specials for 2 or 3 month subscription or full year. I would do a search of 2 weeks trials, etc.


https://www.investors.com/

[apenland01]

Good evening all,

With-out going into to much detail, (have signed the NDA, good for a year, ends in Oct), what to do with it. It currently isn't doing that well, hovering at the same $$, +/- here and there. In my brain, insert chuckles as needed, letting it sit isn't accomplishing anything. But haven't the slightest inclination on how to make it "work" for me.

It doesn't sound like you really need to learn about the stock market, but rather your former company's future. Is it stock in an account like Fidelity or something, or stock options you have to exercise in a certain period of time? If you don't have a time limit and you think the company can dig itself out of it's current hole, it may be best to keep it and let it grow, but if it's dicey, you could sell it and put into something earning more interest or dividends...

[OdingyNBugs]

Thanks for the responses... I have already purchased them, and they have been sitting for about 3 yrs... Just unsure if I should go a different route, ie: invest in other opportunities or just let it ride

[Charles Prestridge]

Like apenland01 said.

Having worked for the company, you have some insider info about how the company will perform in the future.

Just evaluate the situation:
1. Do you receive dividends? If so, what is the yield on the dividends?
2. Does your layoff indicate company is just trying to cut costs to be more profitable, or is a revenue decline forcing layoffs?
3. What is your tax-basis for the stocks? Have you paid tax on the stock in prior years?
4. If you sell, how much tax will you owe?
5. If you sell now, will you have a loss to reduce your overall taxes? If so, do you want to take loss this year or another year?
6. If you are unsure, sell and invest in a low-cost index fund.
7. If you sell, one thing you can do. Move as much as possible to Roth IRA’s each year. If you did not fund a Roth last year, you can fund both last year’s and this year’s Roth IRA. Each year, move the maximum amount to a Roth.

Nobody knows the future. No exact answers. Do not overthink situation. Evaluate basic info, develop a plan, and go forward (even if plan is holding onto the stock).

[davidsa]

Charles makes great points. The future of a single stock is much harder to guess then to characterize a sound financial approach. A sound financial approach is about investing in tax deferred or tax less programs like an 401K, IRA, Roth IRA and ensuring one is saving a % over a long period of time. Lots of reading you can do online about load dollar averaging into index funds over time.

I hold and have held a large portion of my portfolio in an employeer sponsored retirement plan. One thing I will say is that a single company has many ups and downs and that just working for the company does not tell me the future stock price. When I retire I will divest out of all company stock within 1 year as do most. Not because the company won't grow but rather most want a diverse portfolio.