In the early 1990s, the European foreign-exchange market came under strong speculative pressure and one currency after the other came under attack. The crisis culminated in 1993 with speculation against the Exchange-Rate Mechanism, ERM, existing at the time.
And, as was made painfully clear last year, many 401(k) participants seem to invest heavily 6 in employer stock. Overall, about one-quarter of aggregate 401(k) balances are in company stock, but for many employees the share is far higher. Why do workers invest so much in company stock?