If someone works for a company and gets a 15% discount on the stock, would it be legal to buy the stock at this discount and sell it tomorow at full price?
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March 1, 2010 9:04 a.m. BlackHatContracting Reader
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March 1, 2010 9:09 a.m. Trans_Maro HalfDork
The places I've worked at would fire you for it.
Shawn
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March 1, 2010 9:17 a.m. rob_lewis Dork
However, there should be an amount of time that you can hold it before selling it. Dell use to do the same thing and quite a few employees took advantage of it. After selling costs, they would average a net of 5-6% a year.
Many companies, however, have stopped this practice in the wake of all the financial troubles.
Disclaimer, I am NOT a stock broker or claim to know anything about stocks. I just stayed at a Holiday Inn last night....
-Rob
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March 1, 2010 9:22 a.m. BoxheadTim HalfDork
Usually, in order to partake in these schemes you'll have to sign/agree with additional paperwork which might well specify a minimum holding period.
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March 1, 2010 9:23 a.m. jrw1621 Dork
Less of a legal question and more of a moral question.
How much do you want to abuse the gift (discount) that the company is giving you?
I expect that it is clearly against the companies policy and as others have noted, a quick way to being fired. With that said, is the 15% benifit worth the risk? -
March 1, 2010 9:36 a.m. BlackHatContracting Reader
Well a friend just got this job and it was actually the HR person that said you could sell it right away for a profit, Im guessing she was being facetious, but I was just curious since you could make a lot more money doing this than from the job itself, IF of course it was even allowed.
