Have you been offered an employee stock purchase plan (ESPP) in your compensation package? An ESPP allows you to buy your company’s stock at a discount, defer tax payments on the gains until you sell the shares, and take advantage of additional tax benefits depending on how long you hold onto the shares. Below are frequently asked questions regarding ESPPs and what you should keep in mind before participating in your company’s plan.
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What to Know Before Participating in an Employee Stock Purchase Plan