Employee stock purchase plans – An opportunity hiding in plain sight

Description

Abstract: Conventional wisdom holds that it’s dangerous to tie too much personal wealth to the fortunes of one’s employer. When it comes to employee stock purchase plans (ESPPs), however, conventional wisdom about not putting too many eggs in one basket may be worth reconsidering. This article shows how an ESPP’s employee discount has the potential to provide an attractive return — though it’s not a risk-free strategy. A sidebar looks at ESPP tax considerations.