If you work for a public company - make money with discounted employee stock purchase plans

60. Make $1,000+ per year – If you work for a public company – make money with discounted employee stock purchase plans

You can make a great rate of return on your money if your employer sells stock at a discount with no vesting period required before you sell the stock. At a former employer, my husband buys company stock at a 15% discount. We signed up to buy $20,000 worth of stock each year. The money was subtracted in equal installments from my husband's paychecks twice each month. The stock was bought at the end of each quarter. At the end of each quarter we would then turn around and sell the stock right away for the full price.

Each quarter my husband had $5,000 deducted from his paychecks in equal amounts over the quarter. The average amount of money we had in the stock purchase plan during each quarter was $2,500 - zero at the beginning of the quarter and $5,000 at the end. At the end of each quarter $5,000 of company stock was bought at a 15% discount, or $5,882 worth of stock. We then sold it right away making a profit of approximately $882. (The amount varied slightly because of changes in the stock prices during the settlement period. But more or less, we averaged $882 profit each quarter, before taxes and less minor transaction costs.) Over the course of the year we had an average investment in the stock plan of $2,500 and made $3,528.

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