What Does Employee Stock Purchase Plan Mean?

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What does Employee Stock Purchase Plan mean? Read on to discover the definition & meaning of the term Employee Stock Purchase Plan - to help you better understand the language used in insurance policies.

Employee Stock Purchase Plan

Employee Stock Purchase Plan

Allows employees to buy company stock through payroll deductions, usually at a discounted price. Employees can sell stocks purchased through these plans at any time. Because they are buying at a discounted price, immediate profits are often possible. (Stock purchase plans are usually set up as tax-qualified "Section 423" plans.)

We hope the you have a better understanding of the meaning of Employee Stock Purchase Plan.

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