I am signing up for Wealthfront to start investing my savings. One of the questions it has asked me is whether they should not buy/sell any particular stock which I am restricted from trading. Obviously since I work in Uber I can't buy or sell the stock during blackout periods. But they say they can't control purchase of stocks within an ETF. I am a bit new to this. Can someone help in telling me if there are any risks here?? Thanks
I don’t see any risk here.
The risk is being accused of insider trading or getting fired due to violating some corporate policy
They mostly invest in ETFs and that is not equivalent to buying stock of a particular company. If you are not allowed to buy stock of your own company, add it to blacklist, so that if you cross 100K and and Wealthfront decides to do 1 to 1 parity. They will not buy stocks from your blacklist.
I Nomi I’m
Just to be safe I'm putting both Uber and Lyft to the list of restricted stocks
The point is to avoid insider trading. If you are not the one making the decision, you are fine (same happens with etfs)
Most companies allow you to still buy broad index funds that contain the company inside the company 401k, even during blackout periods
I think it is to avoid wash-sale rule. You can google to learn more about it.
Layoffs
Yesterday
345
Hot take: companies don't owe you interview feedback when they reject you
Tech Industry
Yesterday
1050
Do you really think Amazon is that bad
Health & Wellness
4h
561
How can I find success dating in NYC
Tech Industry
Yesterday
812
Best LCOL or MCOL city?
India
Yesterday
1650
Slavery has REVERSED! the US is the slave!!! Check out this dude who pays a personal trainer in India
Check your company blackout policy. Broad market ETF and mutual funds should be normally exempt due to small weight of the company in them. They are at Google.
Also because you don't control when the stock is bought it sold it makes any insider info you have irrelevant.