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Right, and you also pay a commission to the broker, so your after tax discount might be 8 or 9% rather than 15%. Still a very good deal if the stock price does not fluctuate too much. You are smart to be concerned about putting too many eggs in one basket, but selling "right away" is probably not necessary. And you can get the capital gain tax rate on profit above the discount amount by directing your broker to sell shares which you have held for more than one year. Your first priority for investment funds should be the 401k, where you get employer matching, then buy as many shares at the discount as you afford if you are confident you can always sell before a price drop greater than your net discount.
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