Employee Stock Purchase Plan (ESPP)

Definition:

A plan usually linked to a corporation's payroll deduction system allowing employees to purchase shares at a discount from current market value.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Dedicated capital

Total par value (number of shares issued, multiplied by the par value of each share). Also called dedicated value.

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