If you are risk-averse, you might consider selling your ESPP shares right away so you don’t have overexposure in one stock, particularly that of your own employer. ESPP shares can put you in an overexposed position. If the stock value goes down, you may suffer losses and in extreme cases, even lose your job.

Are ESPPs worth it?

Are ESPPs good investments? These plans can be great investments if used correctly. Purchasing stock at a discount is certainly a valuable tool for accumulating wealth, but comes with investment risks you should consider. An ESPP plan with a 15% discount effectively yields an immediate 17.6% return on investment.

How do ESPPs work?

An employee stock purchase plan (ESPP) is a company-run program in which participating employees can purchase company stock at a discounted price. At the purchase date, the company uses the employee’s accumulated funds to purchase stock in the company on behalf of the participating employees.

How long should you hold ESPP?

one year
To get favorable long-term capital gains treatment, you have to hold the shares purchased under a Section 423 ESPP for more than one year from the purchase date and more than two years from the grant (or enrollment) date.

Where can I get full access to my ESPP account?

Your company’s employees have full access to their ESPP accounts through Computershare’s Employee Online web site. Highlights of what employees can do include: From emails, to videos to posters to live presentations, let us help you build a campaign that educates your employees on the value of your ESPP.

How much stock can an employee buy in an ESPP?

Some offering periods have multiple purchase dates in which stock may be purchased. ESPPs typically do not allow individuals who own more than 5% of company stock to participate. Restrictions are often in place to disallow employees who have not been employed with the company for a specified duration – often one year.

What do you need to know about ESPP day?

ESPP Day is the one-day conference that provides a comprehensive education on all aspects of employee stock purchase plans. Whether you are a beginner or more advanced, all the sessions provide useful information with real-world applications to help establish an ESPP or make the most of the ESPP you already have.

How can I get alerts on my ESPP account?

Participants can receive alerts on their mobile phones when certain events occur on their accounts. Your company’s employees have full access to their ESPP accounts through Computershare’s Employee Online web site. Highlights of what employees can do include: