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sam1933

06/07/17 1:58 PM

#67439 RE: mdm92 #67438

you never know... Typically public companies will let their employees buy stock at a slight discount (5% or so), but months in advance so that you don't have to worry about insider trading rules.

For example, you'll put in an order with your company for $xxxx of stock, but at a 5% discount of whatever the stock price is in 6 months. You won't receive the stock for 6 months, when the trade is then executed.
These open buying periods happen a couple of times a year.

This is set because most people have no information on material changes that would be happening in 6 months, but they may still want to invest in the company itself.

The average employee is just treating it as an investment, buying similar amounts each open period, rather than attempting to guess at the future position of the business based on their internal information.