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employee stock purchase plan

An employee stock purchase plan allows employees to buy company stock through payroll deductions, usually at a discounted price.

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employee stock purchase plan

An employee stock purchase plan allows employees to buy company stock through payroll deductions, usually at a discounted price.

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Employees can sell stocks purchased through these plans at any time. Because they are buying at a discounted price, immediate profits are often possible. (Stock purchase plans are usually set up as tax-qualified "Section 423" plans.)