ESPP: Are Employee Stock Purchase Plans Worth It? Story

ESPP: Are Employee Stock Purchase Plans Worth It?

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Let us tackle the factors which make ESPP a valuable perk and whether or not you should participate.

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What Is an Employee Stock Purchasing Plan (ESSP)?

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An ESSP allows you to buy your company’s stock at a discounted value, usually around 5-15% of the fair market price.

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For example, if your company stock is trading at $100, and the plan discount is 15%, you will receive stocks at $85. If your company has an ESPP, you can buy stock and potentially sell it for a 15% guaranteed profit immediately.

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How Does an ESPP Work?

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Scenario 1

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