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?
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?
The places I've worked at would fire you for it.
Shawn
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
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.
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?
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.
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