Can I use my employee stock purchase plan to basically make 15% for free ?


Hi all. So my employer offers ESPP via paycheck deduction. From Jan 1 – June 30. I am limited to 15% of my paycheck.

From what I can tell, there is no holding period. The section for “When can I sell?” Says “The plan does not impose a holding period for sale of shares but there is a hold period for transitioning to an independent broker of two years to track disqualified distributions”.

Does this mean I could just contribute max, sell when the shares are issued on a June 30th, and withdraw the cash to my savings account? The shares are bought at a 15% discount.

Am I missing something here?


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