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Author: mwlowe Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75772  
Subject: 401k/Company Stock Date: 1/7/2002 9:50 AM
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A question for any Fools out there who purchase company stock thru there 401k Plan --

What price ranges are you getting the stock at in comparision to the stocks current market pricing?

I've just added my company's stock to my 401k portfolio since its price is off its 52 week highs and I just hopped online to verify my end of year balances and noticed that my first 2002 contribution was already recorded so I checked on how many shares I had actually purchased... Imagine my surprise when I discovered that I purchased 1.03 shares at $40 and change. Just to let you know this is about 4.1 times Fridays closing price on the stock.. Do other companies do this too? This is actually my first actual 401k plan. My other retirement plan with the last company I worked for was a SIMPLE-IRA. I checking with Human resources today for a hard copy of the SPD to see if it actually mentions this kind of "price inflation". But I also wanted to find out from others if this is a common practice.

Thanks for any help/assistance any of you can offer
MWLowe
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Author: RandGraham One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33141 of 75772
Subject: Re: 401k/Company Stock Date: 1/7/2002 12:26 PM
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The company match where I work is in company stock. But what this means is that it is in a unitized mutual fund. I actually get shares of a mutual fund where the only thing the fund owns is company stock. I don't get shares of the company stock directly. Therefore the price per share and the number of shares that I get in the 401k mutual fund do not exactly match the share price of the stock.

I suspect this is what is happening to you.

Regards,
Rand

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Author: mwlowe Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33181 of 75772
Subject: Re: 401k/Company Stock Date: 1/9/2002 12:22 AM
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Thanks for your response and you are correct this is what is happening? One other question... If the price you are purchasing at in the same general 4X current stock market value price. I tried to get a better grip on whether or not this is being managed properly (ie is the plan mgmt company try to unload high priced shares from their inventory onto us )

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Author: RandGraham One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33208 of 75772
Subject: Re: 401k/Company Stock Date: 1/10/2002 10:44 AM
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In my case shares/units of the company stock fund are about half of the share price of the stock. I.e. stock trades at about $32 per stub and the share/unit price of the fund in the 401k is $16.

Fidelity manages my 401k. If I were you I would call the firm that manages the 401k and ask them what is going on. Also, you may want to look into unitized mutual funds.

Regards,
Rand

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