a tax-subsidized saving vehicle that allows a worker to use after-tax income to purchase company stock, often at a discount
Employee Stock Purchase Plan. An employer plan under which all employees are given the opportunity to buy the employer's stock at a discount, subject to strict limitations.
Employee Stock Purchase Plan. 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%).
Employee Stock Purchase Plan – Plan based on monthly automatic deduction from the employee's payroll for purchase of stock in their company. For instance, if the company elects to set up an ESPP, its US employees can have a portion of their income automatically deducted on a monthly basis for the purchase of the company ADRs. In some cases, these ADRs can receive special tax treatment if included in tax-advantageous retirement accounts.
Employee Stock Purchase Plan. 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.
ESPP is an acronym commonly used for Employee Stock Purchase Plan. These plans are set up by corporations for employees to purchase corporate stock, often at a discount. This discount is 85% of the stock price at a certain date as determined by the plan.