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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Charles Tutt who wrote (46504)	12/2/2001 7:17:35 PM
From: LKO	Respond to of 64865

Slightly OT... Enron (and Enron employees?) bankruptcy begs a question raised in this article in NYT (registeration required): Beware Those One-Note 401(k)'s By GRETCHEN MORGENSON nytimes.com It says: As of Oct. 31, according to Hewitt Associates, 29.6 percent of 401(k) assets held in 1.5 million plans are in stock of the company sponsoring the plan. That is up from 28.4 percent at this time last year. In some high-profile companies, the proportion is even higher. At the end of last year, the most recent figures available, 46 percent of Microsoft's 401(k) plan was held in its own stock. ... Mr. Gottesdiener, who has filed a suit against Enron on behalf of workers there, identified a simple way to reduce such enormous risks: Require sensible diversification in these plans Assuming this would go out of fashion, should we expect companies to sell the 401k holdings out of their own stock ? Also, is this likely to be a significant percentage of the daily trading volume ? Anyone know what percentage of 401k of SUNW employees is invested in SUNW ? Just pondering if this is something to worry about ... or a minor flash in the pan for the general investor... LKO