Showing posts from January, 2018

Should I buy my company’s stock?

Photo Courtesy My company allows me to purchase stock at its price on the first or last trading day of the year-which ever is lower and at an additional 15% discount.  I buy the stock through monthly payroll deductions and receive my shares the first few days of the following year.  This is a great deal, especially in years when my company’s share price appreciates-my company’s stock was up over 20% in 2017!  This meant after my 15% discount and taxes I realized a 30% return.  Happy New Year to me! Discounted company share purchase plans can be great investments but only under certain conditions: You don’t have alternative investment options that would give you a higher rate of return than the discount (minus taxes) You don’t have debt at a higher interest rate than the discount your company is offering Your company will immediately allow you to liquidate your purchased shares Obviously, if there is a higher return vehicle you could be investing in or yo