My new employer offers an employee stock purchase plan, where in I can take as much of 15 % of my salary and buy stock at a 10% discount. Purchase dates are quarterly.
So, I've never had one of these plans before, and I want to make sure I understand the implications. I don't want a large amount of my money invested in a single company, especially one I already work for. But since there is a 10% discount, is there any reason not to put the maximum into this plan and immediately sell the stock? Wouldn't that just be effectively increasing my income by 1.5%?
Further, if I hold it for two years and sell (instead of selling immediately), it is a qualifying disposition. But are the tax advantages significant enough that it is worth the risk?