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Originally Posted by spazzyfry123
May not be the perfect thread, but I think it has the right audience.
Anyone participate in ESPP? Mine offers 15% discount of market price with up to 10% salary investment (up to $20k/year). Latest dividend offering looks to be one share per 18.3 or something shares owned. As I understand it, the program automatically purchases quarterly and the 15% discount price is based of the average share price for that quarterly period.
Curious on other people's experiences. I've tossed 3% of my bi-weekly checks into the hat, but I have no experience with it. Figured I've recently gotten a 3% annual raise, so it will go unnoticed and hopefully prove to be worth more than the 3% provided. Company is doing well, so...why not?
...right?  |
On the surface an ESPP can sound risky or a good deal. As an employee, you may or may not have a sense of how well your company is doing. And by investing in a single company, you are losing the advantage of diversification. I have been in these programs for two defense companies and have done very well on them....in addition to other investments. However, I’m fairly senior and have a better understanding of what’s going on with a company than a typical employee may be. This gives you more confidence to know you will get a solid or higher than average return. For example, a regular employee will not be aware of an impending merger or acquisition. I’m those instances senior business members can be restricted from buying or selling company stock during those periods.