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URL:  http://boards.fool.com/employee-stock-purchase-and-capital-gains-15379666.aspx

Subject:  Employee Stock Purchase and capital gains Date:  7/16/2001  2:30 PM
Author:  tonyvl Number:  52578 of 120781

I work for a company in the DJIA in which I can buy shares at 15% discount. I'm 25 years old and have been investing for a little over a year. Last year I invested about $7000 (which is almost my net worth) total in 401k, a couple individual stocks, and my company's stock.

I want to make sure I'm diversified and now I'm getting very heavy on the company I work for (they match 401k through company shares too).

I'm thinking about staying in the Employee Stock Purchase plan and buy stock at 15% discount and then sell them right away and invest in other funds/stocks. Will the capital gains of doing this cost more in the long run? Is there a formula I can use for evaluation? Should I just limit my Employee Stock Purchase and just use that money to put into other investments?

Thanks for the help!!!
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