Employee Stock Purchasing Plan
an employee stock purchase plan or espp is a company ran program that allows eligible employees to purchase company's stock at a discount to fair market value. enrolled employees elect to have 1% to 20% of each pay check automatically deposited into their brokerage account. at the end of each offering period, the company uses the accumulated funds to purchase stock for the employee at a discount of up to 15% below fair market value. espps are offered to give employees a form of ownership. the potential financial benefits from purchasing discounted stock can also help attract and retain employees, especially if the employer maxes a portion of the employees contributions. by selling the stock immediately after purchase, employees can quickly earn profits that are nearly equal to the amount of the purchase discount, varying a short change in the stock's price. investing in your company's stock can be risky, if you allocate too much of your portfolio to it. even with a strong understanding of how the company's fundamentals influence the stock's value, outside economic and political factors or hidden bad news at the company could cost the stock's value to fall unexpectedly. holding the stock long term increases your exposure to ?. unless you can afford a large risk, limit your espp investment to about 10% or less of your total portfolio.
- employee stock purchase plan（espp）・・・従業員自社株買い取り選択権制度
- pay check・・・給与小切手