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To: chic_hearne who wrote (9195)	8/8/2000 2:02:20 AM
From: Perspective	Read Replies (1) \| Respond to of 436258

Most ESPPs involve the issuance of brand new shares. The companies use them as an additional source of cash. If you prefer, you can think of it as letting the investing public pay a portion of the salary expense instead of taking it out of cash flow. (Unlike options, however, IBM still takes a charge against earnings for the salary despite paying it in stock. I don't know how they treat the 15% discount, which is also a cost to shareholders.) Maybe a change in the ESPP plan that changes _selling_ patterns can alter the stock price equilibrium, but I doubt that increased employee participation will boost open market demand for the stock. Also note, most ESPPs like this one roll the money up for an entire quarter, and the shares are purchased and issued only at the end of the quarter. Just my experience with them. BC