Hit them where it hurts. These guys only care about stock price. If we all take out 401k loan it will cause massive sell in shares. When you take out loan first security that get sold is the company stock. If we tank the stock price the shareholders at meeting will not like it.
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You don't own company stock - you own shares in a Vz Corporation that owns the stock. A derivative, really ! So you cannot VOTE at the shareholders' meeting! !!!
Borrowing against your 401k is exactly that, you are taking out a loan using the stocks and bonds in your account as collateral. Similar to a home equity loan, where you are using your house as collateral.
The underlying asset can be liquidated, if you default on the loan.
I would talk to a financial advisor prior to pursuing this or taking an early withdrawal from your 401k (this would involve a 10% penalty, plus tax withholdings).
The amount of bad financial advice here is staggering. If you were a fiduciary you would likely be on your way to jail or at least civil court.
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Withdraw from 401k should be your last resort.
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That is not how a 401k loan works, shares do not sell. You still own them but a lean is placed against your account until you pay the money back. You could choose to pay it back by "withdrawing" from the 401k but then pay the tax penalties.