That’s a reason not to hold hold all your stock in the company. It’s not a good reason to not take a calculated risk wig some of it. Receiving vested shares of a publicly traded corporation you work for is one of the few situations where you can actually profit on insider information, if you’re share allocation is low enough as to not be caught by special rules. As a general principle you cannot be forced to sell your property. Insider trading is only on buying or selling shares. So if you receive vested shares, and then you decide not to sell based on insider info that you think the stock will go up, And then you finally do so later when that information is public and the stock does go up, that’s not illegal. (I’m not a lawyer, you should consult one etc. etc.)

Prudent financial planning would mean it is wise to put a large chunk of your savings in something other than the company you work for. But rationally optimal financial planning should incorporate the benefits of a vesting stock plan as well. It’s a balance.

Exactly this. Not only that, but typically there are sell windows with your company that prevent you from being flexible with a sale if there’s a personal emergency.

Better to stay diversified.