Employee Stock Purchase Plan - ESPP
Depending when you sell the shares, the disposition will be classified as either qualified or not qualified. If the position is sold two years after the offering date and at least one year after the purchase date, the shares will fall under a qualified disposition. If the shares are sold within two years of the offering date or one year after the purchase date the disposition will not be qualified. These positions will have different tax implications.
Investment dictionary. Academic. 2012.
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employee stock ownership plan — noun a program under which employees regularly accumulate shares and may ultimately assume control of the company • Syn: ↑ESOP • Hypernyms: ↑stock purchase plan … Useful english dictionary
stock purchase plan — noun an organized plan for employees of a company to buy shares of its stock • Hypernyms: ↑plan, ↑program, ↑programme • Hyponyms: ↑employee stock ownership plan, ↑ESOP … Useful english dictionary
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