Legal Question in Investment Law in Arizona

Re: Cap on internal investment

Are you talking about through an internal retirement plan? Or through an outside investment account.

If its through an internal retirement plan, i.e. a 401K, the company can limit the purchase amount indirectly through its matching component. The plan may also, and this would be determined by reading the plan documents, restrict the amount of stock purchased due to the amount authorized for Plan use each year.

In general though, a prudent investor would have no more than 20% of their portfolio in their employers stock. This came out of the ENRON nightmare and is common knowledge amongst investment advisers.