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An employee stock purchase plan (espp) allows employees to buy their company's stock directly at a discounted rate, making it an attractive employee benefit Espps allow employees to contribute a portion of their paycheck toward purchasing company stock at a discounted price Espps can potentially generate a return in multiple ways

With a discount, a lookback provision, a company match, and through the performance of the underlying company stock What is an employee stock purchase plan An employee stock purchase plan (espp) 1 is an optional program that allows you to buy shares of your company's stock at a discounted price

Here are answers to seven common questions that employees have about their espp

How does an espp work Employee stock purchase plans (espps) let workers buy company stock at a discount, often with tax perks if rules are met What is an employee stock purchase plan (espp) An employee stock purchase plan is an employee benefit offered by publicly traded companies that allows employees to buy company stock at a discount through a payroll deduction

Get expert money advice to reach your money goals faster! An employee stock purchase plan (espp) is a benefit that many companies listed on the stock exchange offer to their employees These plans allow employees to set money aside from each paycheck and then purchase the company's stock at specific points—often for a discount. Employee stock purchase plans (espps) are offered to employees as part of a benefit package

They present an opportunity for employees to purchase company stocks at a discounted price

This benefit fosters a symbiotic relationship between the company and its workforce.

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