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As mentioned in an earlier post I am an employee for Jabil. I have a question about how (if at all) employee stock purchase plans effect share price. Until a month ago you had to be employed here for one year to qualify for the stock plan. Now that has been changed to 90 days. This is making almost everyone here qualified and the meetings to sign up were jam packed. My question is will the big surge in employee stock purchase possibly drive the price up next June? By the way the company only purchases for employees twice a year. Late December and June. I still consider myself a novice investor so please excuse me if the question seems irrelevant.
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I don't quite understand this, unless this is a stock option plan where shares are offered to employees at reduced rates. Otherwise, what is the big deal? I mean, anyone, employee or not, can go out and buy shares of a publicly traded company at any time. I work for a company with an employee stock purchase plan, but it is a privately held company so only employees can buy it anyway.
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The shares are offered at a 15% discount. Since they are all bought at the same time I thought it might make a difference. Thanks for the info. though.
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Would the company then have interest is seeing the price go down in December???
Marion
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Well, I don't profess to be an investing expert myself, but it seems to me that this would not have any positive effect on stock price. I could definitely see the price getting depressed if the company were to issue more shares for the option plan though. All things considered, I don't think stock option plans have any real impact on share price overall.
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Anytime purchases are made on the open market it's relevant! Two things:

First, Employee Purchase Programs (EPP) usually make their purchases on the open market. Last time I checked that had an impact on price! Volume of course has an impact. The fact that JBL is subsidizing the purchase is merely an employee benefit.

Second, EPPs create long term shareholders by the bushel. Good for the new shareholder and old. EPPs do not, by their nature, create traders.

So, overall, I see this as an EXCELLENT opportunity for JBL to create: Happy Employees thru improved net worth, Happy Shareholders by improving price (sopping up cheap shares).

I have participated in several EPPs over my spotty employment history and never regretted any of them. GO JBL!

BeLom
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