![]() The text "Offering Date" appears, and a line emerges upward to a circle containing cash. At the end of the Offering Period, on the Purchase Date, the stock price has gone up to $160. Narrator: Say you begin setting aside $300 from every paycheck on your company's Offering Date, and that the stock price on that day was $150. Let's take a look at a really simple example. Narrator: Let's take a look at a really simple example. A blue box containing the text "Check with your company for specific plan information." appears above the graph. ![]() The same line graph showing a company's stock price, this time with a downward trajectory for the price by the Purchase Date, appears. Of course, be sure to check with your company for specific plan information. In this example, the purchase date price is lower than what you paid for it on the offering date, so the discount is applied to the Purchase Date. Narrator: The discount is applied to the company's stock price on whichever date the price is lower. Therefore, there is an unrealized gain.Ī line graph showing an upward trajectory of a company's stock price appears, representing the time between the Offering Date and the Purchase Date. In this example, the company's stock price on the purchase date is higher than the price you bought it for. ![]() Narrator: The purchase price is the stock price at the end of the purchase period, less the discount offered. ![]() The text "Purchase Date: buy shares of company stock at discounted price." appears next to the certificates. Narrator: The Purchase Date is when the money that has been accumulating is used to purchase shares of the company stock at the discounted price.Ī circle containing cash appears, which is then replaced by certificates. The Offering Period separates into two different Purchase Periods with individual Purchase Dates. Narrator: Multiple Purchase Periods fit into what is called an Offering Period, and each one ends with a Purchase Date. The Offering Period ends at the Purchase Date. The line continues on past the calendar into the "Offering Period," where cash appears above it. Narrator: Your contributions build up during the Offering Period, and then shares of your company's stock are bought for you on the Purchase Date. A calendar rises out of "Offering Period begins." A line emerges from "Enrollment," ending with "Offering Period begins" to represent the amount of time between the two events. After you're enrolled, the Offering Period begins, which means your after-tax payroll deductions start accumulating. Narrator: Most companies offer a two- to four-week enrollment period. ![]() The desktop screen enlarges to replace the animation. Narrator: There are a few important terms and dates associated with ESPPs. As she looks on, the price goes from $400 a share to $300. The woman turns on the computer and views a page showing a pie chart of stock allocations. Narrator: And these shares are available to employees at a discounted price that's lower than what you would pay on the open market.Īnd these shares are available to employees at a discounted price that's lower than what you would pay on the open market. She adjusts a desk lamp and sets down a coffee mug. Narrator : An employee stock purchase plan, or ESPP, is an optional benefit that allows employees to set aside after-tax dollars from each paycheck to buy shares of their company's stock.Īn employee stock purchase plan, or ESPP, is an optional benefit that allows employees to set aside after-tax dollars from each paycheck to buy shares of their company's stock.Īn animation of a woman sitting at a desktop computer appears. ![]()
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