Companies with high levels of their own stock in their retirement plans often fail to scale back their exposure even when they're heading into financial straits, according to a new study.
The result, the study said, can lead to significant losses to participants' retirement savings, suggesting a need for limits on how much such stock should be held by a company plan.
The research, by academics at Boston College, the University of California, Riverside and the University of Alberta, found that large stakes in company stock see little variation in the years before struggling companies fall into default or even bankruptcy.
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