What You Should Know about Employee Stock Purchase Plans (ESPP)

An employee stock purchase plan, or ESPP, is an employee benefit that allows employees to purchase company stock via payroll deductions. If you have an ESPP, you can often purchase shares at a discounted price to the fair market value. Some companies offer a discount as high as 15%. Generally, employee stock purchase plans are offered in an effort to incentivize employees. Over time, with regular and consistent participation, an employee may be able to...