My wife works for a publicly traded company. They are implementing a new benefit this year and you have to enroll this month. The way it works is you set an amount you want to contribute each paycheck up to $10,000 total every six months. Then at the end of the six months your amount is used to purchase the company’s stock at 15% off of whatever the lowest price the stock had been during the period, issued to you immediately. You can of course then either sell the stock immediately at the current market price or hold onto it indefinitely. This will be repeated until further notice.
I can’t see a reason why I wouldn’t just have her max out the contribution and then sell the stock immediately when it’s issued for a minimum bonus of $1500. What am I missing?
Also, why would the company do this? They have 10’s of thousands of employees, if many did this wouldn’t the sell off hurt the stock price?
Submitted January 17, 2019 at 08:05PM by tubtubtubs http://bit.ly/2Hgl7x6
