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Webster's New World Finance and Investment Dictionary » Employee Stock Purchase Plan
Employee Stock Purchase Plan
Employee Stock Purchase Plan definition - finance
A plan that allows employees to buy stock in
the company through payroll deductions. Often the stock price is discounted,
typi-cally 15 percent from the market price. After purchasing the stock, the
employee can sell it for a quick profit or hold onto it. Often ESPPs are set up
as tax-qualified Section 423 plans, which means that all employees at the
company two years or longer must be able to participate.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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