“Δός μοι πᾷ στῶ καὶ τὰν γᾶν κινήσω “
“Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.”
In the last article, “Investments Where You Can Influence the Outcome” we talked about investments where, rather than doing your research beforehand, investing your money, and hoping for the best, you could potentially positively (or negatively) influence the outcome of your investment after you’d already made your investment.
One commenter, who runs the blog Done by Forty, suggested that one possible investment where you could influence the outcome is via an employee stock purchase plan (ESPP).
After all, if you work there, and you are purchasing company stock, aren’t you a little more motivated to work harder, unless you just realize that you’re working with a bunch of mega-brains and you’re the Atlas of the bell curve, holding it up for everyone else who works there. In that case, you might be investing in your co-workers rather than your own motivation! But, I digress…
Let’s look a little deeper at ESPPs and their cousin the employee stock option and see just how much your motivation impacts the stock price of your employer.
But, first, we need to answer the basic question: what is an ESPP?