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moneysense.ca, 26/06/05
Enrolling in ESPP
Recently, I enrolled in the Employee Stock Purchase Plan offered by my employer. The plan is typical of its kind and allows employees set aside a portion of total compensation to purchase company stock at a discount to market value. A potentially profitable feature is locking up a low stock price for a 24-month period.
I do plan to be disciplined with the plan. Every six months, as soon as the stock is deposited in my account, I plan to sell at the market price and earn a sure 17% return. Of course, the plan has the potential to deliver outsized gains. As fellow blogger Jose Anes points out in this post, ESPP is the closest thing to a free lunch, so I plan to take full advantage of it.
moneysense.ca, 26/06/05







Hello,
Have you checked up the implications on your taxation angle?
cvrk: In this case, tax considerations are secondary. Holding shares purchased in the plan is very risky. I’d rather sell, pay the necessary tax happily and invest the proceeds elsewhere.