If the choice was investing in the company or not, that would be true. Why would I want to buy stock at my company? Shouldn’t I just invest in diversified index funds? You might be thinking the same thing I was: ESPPs are often offered a benefit/incentive at publicly traded companies, allowing employees to earn more money than they could with their paycheck alone. What is an ESPP?Īn ESPP, or employee stock purchase plan, is a company-run program (like a 401k) that allows employees to buy stock, often at a discount. If you have a question then chances are many others also have that same one. If you’re unsure if you should ask – please ask. If anything you want to know about employee stock purchase plans isn’t covered in this guide, feel free to ask in the comments! This is a living document of the most common questions asked. I’ve been going through the same road to discovery on this issue and wanted to write up a guide about what I’ve learned while everything is still fresh in my mind. If you’re completely new to the topic and trying to wrap your head around it, then this guide is for you. ![]() Are they worth it? Why should I use one? What’s in it for me? As soon as the company I work for announced they were starting one, I began consuming everything I possibly could about them. I’ll be honest, I’d never heard the term ESPP or “ employee stock purchase plan” up until recently.
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