Benefits of an Employee Stock Purchase Plan

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Employee stock purchase plans (ESPPs) are company-sponsored programs that allow employees to purchase company stock at discounted rates. Typically, employees agree to have a certain percentage of their paychecks withheld each pay period and placed into a fund that is used to purchase company stock at a price discounted from the current market price on pre-specified dates.

While these plans are often touted as an attractive element of a compensation and benefits package, there are a number of less obvious benefits to such programs, as well.

Increased Engagement

Encouraging employees to purchase stock in the company helps foster

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