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To: Sunny who wrote (29819)	8/11/2000 9:50:52 AM
From: gingersreisse	Read Replies (1) \| Respond to of 54805

To add a little more to this excellent post: My employer's stock purchase program runs a little differently. You payroll deduct a % of after tax salary each pay period for stock purchases, which are executed at the end of the quarter. You can contribute $50 per pay, for example and the employer accumulates it in a fund. At the end of the period, they note the beginning of the quarter's share price ($40, for example), and the end of quarter price ($50). Your contribution is used to purchase shares at 85% of the lower price, so you pay $34 (85% of $40), even though the fair market value was $50 on the day you bought it for $34. That's how this plan locks in the 15% minimum. The IRS requires you hold this employer stock for at least 21 months to qualify the discount. If you don't, your employer must impute the discount (the $50 fair market minus the $34 you paid) to you as ordinary income. If you participate in this kind of qualified employer share program, be prepared to hold the shares for at least 21 months! GSR