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Lesson 14. Employee Stock Ownership Plans > The 30-Second Recap - Pg. 67

Employee Stock Ownership Plans 67 Employees of publicly traded companies can keep an eye on the market and try to exit when the stock is high. Your plan will state how and when it arrives at a value of the stock for distribution purposes. Unfortunately you may be in the other situation. The stock is at a low point. Maybe you can wait a year or six months to retire in hopes that the stock might rise. Tip "Timing the market" is trying to guess the direction and extent of a stock's price movement. Investment professionals can't do this with any consistency and neither can you. Look at the stock market listings in your newspaper or online and you will see numbers representing a 52-week high and low. These two numbers may be quite a distance apart, even for "blue chip" stocks. High tech stocks may show an even larger gap between the high and low. It is not possible to know exactly where the high and low prices are going to be; not even the investing experts can do that. You can, however, be aware of where the stock is relative to those two points and which direction it seems to be moving. For example, at press time, here were prices for a couple of popular stocks: Company IBM Microsoft GE 52-Week High 139 3/16 119 15/16 55 31/32 52-Week Low 89 60 3/8 34 3/16 Daily Close 109 73 1/8 53 1/16 These examples show how it pays to watch the market. Notice that IBM is just about in the middle of its 52-week high and low. Microsoft is on the low side, while GE is very near its 52-week high.