Employment Stock Purchase Plan is a system that allows employees to buy the company's shares in a straightforward and convenient way through the use of after-tax payroll deductions. These are the simplest form of stocks to purchase today. The ESPP plan allows you a golden chance in life to own a piece of the best investment and save for your future stressfree. Every employee who works for such companies that sell their stocks and is under a permanent employment schedule is eligible to join the sale.
What are the benefits of investing in the ESPP?
- You are given the freedom to personally choose exactly what you want to invest ranging from 2-15% of your compensation after tax deductions.
- You are eligible to get 15% discount on the market value of Salesforce shares on the purchasing date.
- You are at liberty to choose how long you will hold on to your shares. You can either sell them shortly after each purchase or save them for a long term.
- You make good money even when you resell them in future because they are from a trusted company.
- You buy them at the lowest price through a feature that allows you to buy either on the purchase date or on the offering date which both of them offer lower rates. This privilege is not experienced by many in the stock market.
- You are lucky to get the lowest price possible for the next 12 months. You are even more privileged to get the reset feature that moves back the offering date if the share price decreases during the six-month purchase period.
- Allows you a 12-18 month offering period that has a 2-6 month purchase periods.
- Allows you to enroll early so that your payroll contributions can grow until they are enough to buy the stocks.
- You can maximize their value by using the six-month purchase period that is if allowed to you.
- You are offered a favorable price different from the outsiders, and you still reap a better income than they do.
- You are enlightened on specific dates when the sale will be beneficial to your pockets.
- Provides you with an instant capital gain when you sell your shares.
- You are given a lifetime chance to watch your savings grow. Getting rich is not overnight by using this stock process but with time you build attractive savings.
- You get to enjoy dividends if your company is one of those who pay dividends each quarter for the stocks you own.