If the company you work for offers stock in their company at a discounted rate, what are the stipulations that come with it?
We have gotten this question a lot in the past and want to help.
Below, we took a call from someone on social media.
They had this very question. See how we responded:
This was offered to me at my old job...
I am familiar with the concept of employee stock because they offered it at my previous company I used to work for.
They gave us a 10% discount on the company stock, but you had to hold it and keep that stock for at least 1 year.
You wouldn't be able to day trade it.
There is a "vesting" period, and then you can do whatever you want with it after that.
Each company's "vesting" period time frame is different.
After that, you could transfer the stock into your own account and do what you want with it.
If you sell it, you will likely have to pay long-term capital gains.
So it really is up to you what you decide to do.
If you are brand new and would like stock at a discount and the company you work for is good and in an uptrend, it may be a viable option for you.
On the other hand if you would like to have more immediate control it may not be the best option for you.
There are a ton of ways you can trade in the stock market, and we teach them right inside of Power Trades University.