Employee stock purchase plan (ESPP)

An Employee Stock Purchase Plan (ESPP) allows employees to buy company shares, often at a discounted price, using payroll deductions. Typically, employees can accumulate these shares during offering periods and purchase them at a favorable rate, sometimes at a discount of up to 15%. The goal is to give employees a way to invest in their company's success and share in its growth. ESPPs are often structured with specific enrollment periods, purchase windows, and limits, offering a convenient and potentially profitable way for employees to build ownership in their company.