jokerfriend6 t1_iujnxna wrote on October 31, 2022 at 8:54 PM

There is a lag on when can sell them. Companies will give you a windows on when you can sell the stock. Usually the trading window is blocked before earnings. It takes usually a week or 2 before the period of ESPP ends and before you have the shares to sell. It is possible for the stock to go down in that 2 week period, so there are NO guarantees. I always do ESPP when I can because it is a good investment long term, as long as they company is solid. I usually hold for over a year to reduce my tax burden.

IStillLikeBeers t1_iuk76ou wrote on October 31, 2022 at 11:21 PM

This is highly dependent on the ESPP. I get my shares the day the period is over and no blackout dates. So, I can essentially sell the next trading day after the offering period ends.

TriggerHappy0071 OP t1_iujr2i6 wrote on October 31, 2022 at 9:17 PM

I see, thanks for letting me know. the ESPP booklet says this, I'm assuming this is what you were referring to as the 1-2 week period?

As soon as reasonably practicable after each exercise date, the Company will arrange the delivery of the purchased Shares to you in a form determined by the Administrator in its sole discretion. The Company also may require that such Shares be retained with such broker, trustee or agent for a designated period of time and/or may establish other procedures to permit tracking of disqualifying dispositions or other dispositions of Shares.

jokerfriend6 t1_iujridc wrote on October 31, 2022 at 9:20 PM

Yes. The other period is blockout period where you cannot sell shares. Usually this period is aligned with earnings or a big company announcement that might be known internally so they will not let you trade during that period.

TriggerHappy0071 OP t1_iujrupx wrote on October 31, 2022 at 9:22 PM

So essentially does this mean that I can usually sell right away, but during some periods when I have internal information before an earnings report or something I cannot sell the ESPP and be required to hold it?

Baxford1020 t1_iuka6ue wrote on October 31, 2022 at 11:44 PM

My company blocks the sale of ESPP shares for 366 days. You should be able to find the information from your provider, company, or HR. We have no way of knowing that.

TriggerHappy0071 OP t1_iukb258 wrote on October 31, 2022 at 11:51 PM

I'll double check the handbook I was sent, but the only language I found so far regarding blocking the sale of ESPP was what I posted above, which sounded vague. Thanks!