A type of employee benefit. Participants in this type of plan are often able to purchase stock at a discounted price (usually at a 15 percent discount from the current market value). Participants don't pay taxes on the investment until they sell their stock (for a profit, they hope).
A type of broad-based stock plan that permits employees to use payroll deductions accumulated over a 3, 6, 12-month, or longer purchase period to acquire stock from the company, generally at a 15% discount. A popular type of ESPP is also known as a "Section 423 plan," after the applicable tax code section governing this type of plan. A non-qualified stock purchase plan would be similar to a Section 423 plan but would not satisfy all the requirements of Section 423 (e.g., a discount in excess of 15%).
An employer plan where all qualifing employees have an opportunity to buy some of the employer's capital stock possibly at a market discount, subject to strict limitations.
An employer-sponsored plan that allows employees to purchase company stock below the fair market value.
Participating employees purchase company stock or ADRs with post-tax income using either payroll deductions or lump-sum payments.
An employer plan under which all employees are given the opportunity to buy the employer's stock at a discount, subject to strict limitations.