BlackHatContracting
BlackHatContracting Reader
3/1/10 9:04 a.m.

If someone works for a company and gets a 15% discount on the stock, would it be legal to buy the stock at this discount and sell it tomorow at full price?

Trans_Maro
Trans_Maro HalfDork
3/1/10 9:09 a.m.

The places I've worked at would fire you for it.

Shawn

rob_lewis
rob_lewis Dork
3/1/10 9:17 a.m.

However, there should be an amount of time that you can hold it before selling it. Dell use to do the same thing and quite a few employees took advantage of it. After selling costs, they would average a net of 5-6% a year.

Many companies, however, have stopped this practice in the wake of all the financial troubles.

Disclaimer, I am NOT a stock broker or claim to know anything about stocks. I just stayed at a Holiday Inn last night....

-Rob

BoxheadTim
BoxheadTim HalfDork
3/1/10 9:22 a.m.

Usually, in order to partake in these schemes you'll have to sign/agree with additional paperwork which might well specify a minimum holding period.

jrw1621
jrw1621 Dork
3/1/10 9:23 a.m.

Less of a legal question and more of a moral question.
How much do you want to abuse the gift (discount) that the company is giving you?
I expect that it is clearly against the companies policy and as others have noted, a quick way to being fired. With that said, is the 15% benifit worth the risk?

BlackHatContracting
BlackHatContracting Reader
3/1/10 9:36 a.m.

Well a friend just got this job and it was actually the HR person that said you could sell it right away for a profit, Im guessing she was being facetious, but I was just curious since you could make a lot more money doing this than from the job itself, IF of course it was even allowed.

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