Participate in ESPP

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An Employee Stock Purchasing Plan (ESPP) is a company run program that lets employees purchase company stock. Usually at a discounted rate, both percentage-wise and using the lower of price of the first/last day of an offering period. Employees can make purchases through payroll deductions.

An example ESPP:

For the example above, you could elect to deduct 15% of each paycheck. At the end of an offering period, your company would use your paycheck deductions to buy discounted stock. Once you have access to the stock, divest it by selling immediately.

Some considerations:

Further Reading

Wealthfront's A Good ESPP Is a No-Brainer dives further into whether you should participate in your ESPP or not.

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