No. of Recommendations: 2

Still, under my original hypothetical, an employer couldn't get away with choosing a stock or two for employees to purchase (non-company stock of course). That would sort of negate the whole idea of "self-directed" wouldn't it?

While a plan such as that you described in your original post could conceivably be established, I personally believe that even with the plethora of other choices within the plan the employer would be liable for any "losses" an employee using the stock purchase option might suffer in that his stock choices were arbitrarily limited within the brokerage account.

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