The Employee Stock Purchase Plan

The employee stock purchase plan is a retirement benefit that many companies offer their employees. This type of plan can be very beneficial to you as an employee. Here are the basics of the employee stock purchase plan.

The Employee Stock Purchase Plan

The employee stock purchase plan allows employees of a company to purchase that company's stock. With this type of plan, you will be able to purchase company stock at a discount from what it is valued at in the market. In some cases, you will be able to get a discount of as much as 15 percent on the price of the stock.

Employee Stake

With this type of program, employees will have a stake in the company that they work in. This gives employees an incentive to work harder and help their businesses succeed. They know that if the company does well, the price of the stock can go up significantly. This will allow them to reap a substantial benefit from owning stock in the company.

Passing on the Stock

Some employee stock purchase plans also allow employees to pass on stock to beneficiaries. With this provision, you do not have to worry about paying taxes in order to pass them on to a child.

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