What to do with this ESPP plan?

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Rebecca_S
Posts: 172
Joined: Sat Oct 06, 2007 6:55 pm

What to do with this ESPP plan?

Post by Rebecca_S » Wed Nov 04, 2015 4:57 pm

My husband just started a new job this week and has the option to contribute to the ESPP at up to 15% of his salary. Stock is bought quarterly at at 15% discount so I was originally planning to have him contribute the maximum. It appears there is no limit on selling immediately, which is what I do with ESPP shares from my job.

However, the stock appears to be a small volume stock listed on the Nasdaq. Share price is volatile, ranges from $1-2 over the past year and was at a high of $5, 5 years ago. When ESPP shares are bought, the employees seem to receive a paper stock certificate. Who does that any more? I don't even know where to go to sell stocks with a paper certificate. It seems the transaction costs could be high to sell and I will need to find a place in town to sell paper certificates.

Given these details, would you still participate? Any recommendations for the cheapest and simplest way to sell stocks a few times a year with paper certificates and possibly small/odd lots?

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FiveK
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Joined: Sun Mar 16, 2014 2:43 pm

Re: What to do with this ESPP plan?

Post by FiveK » Wed Nov 04, 2015 6:16 pm

Even paying 5% per share to sell them would keep you ahead of the game.

Talking with other employees to find out what they do seems worthwhile. He could also ask his boss, HR, etc. The company may encourage people to retain, rather than sell, the shares so he may not want to say "how do I sell these lousy shares as soon as I can?" to his boss. Something such as "in case we want to sell shares at some time to buy something nice, what is the best way to do so?" might be better....

Goal33
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Joined: Sun Apr 12, 2015 12:30 pm

Re: What to do with this ESPP plan?

Post by Goal33 » Wed Nov 04, 2015 6:41 pm

I would do it and he can figure out the details by talking to co-workers.
A man with one watch always knows what time it is; a man with two watches is never sure.

MrKnight
Posts: 266
Joined: Fri Dec 19, 2014 12:24 pm

Re: What to do with this ESPP plan?

Post by MrKnight » Wed Nov 04, 2015 8:29 pm

It's absolutely worth it. Either sell them immediately or sell them after holding a year so that Capital Gains tax is applied against them.

Alto Astral
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Joined: Thu Oct 08, 2009 10:47 am

Re: What to do with this ESPP plan?

Post by Alto Astral » Wed Nov 04, 2015 8:47 pm

I used to max out mine and sell immediately when they became available. Its definitely a nice boost to the income. I would recommend you take avantage of it.

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