6-455: ESPP may refer to: Employee stock purchase plan The European Society for Philosophy and Psychology , a professional organization of philosophers and cognitive scientists Euclidean shortest path problem in computer science; finding a route between two points while avoiding obstacles Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with
12-462: The United States , an employee stock purchase plan ( ESPP ) is a means by which employees of a corporation can purchase the corporation's capital stock , or stock in the corporation's parent company , often at a discount up to 15%. Employees contribute to the plan through payroll deductions, which accumulate between the offering date and the purchase date. On the purchase date, the company uses
18-425: The accumulated funds to purchase shares in the company on behalf of the participating employees. The amount of the discount depends on the specific plan but can be around 15% lower than the market price. ESPPs can also be subject to a vesting schedule, or length of time before the stock is available to the employees, which is typically one or two years of service. These stocks are not taxed until they are sold. If
24-433: The holding is tax-qualified, then the employee may get a discount. Depending on when the employee sells the shares, the disposition will be classified as either qualified or not qualified. If the position is sold two years after the offering date and at least one year after the purchase date, the shares will fall under a qualified disposition. If the shares are sold within two years of the offering date or within one year after
30-518: The purchase date the disposition will not be qualified. The majority of publicly disclosed ESPPs in the United States are tax-qualified plans that follow the rules of Section 423 of the IRC . ESPPs differs from other types of employee stock ownership , such as Employee Stock Ownership Plans (ESOPs) in how the stocks are bought, access to the stocks (either after vesting or upon retirement), taxation for
36-458: The title ESPP . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=ESPP&oldid=1136840170 " Category : Disambiguation pages Hidden categories: Short description is different from Wikidata All article disambiguation pages All disambiguation pages Employee stock purchase plan In
#666333