At whatever price the company is trading at the employee receives x amount of shares for a predetermined $ amount.. Therefore, rather than deplete the cash reserves of the company the employee takes the 'risk' of accepting stock on the assumption it will go up in $ NOT down. If it goes down the employee loses if up he gains. It is like betting on futures. The employee accepts the risk knowing (wink wink) that the company is really offering a much larger sum than the $7,500 in this particular case.. Since all employees seem to think the risk is entirely manageable, we must assume that the pr is a very bullish sign concerning the cos future. aimo :0)
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