What wrong with ESPP?! I got the email that shares were purchased at 108$ each for 10800$ worth but I'm only getting 85 shares instead of 100! WTF! Is it taxes?! If I sell now I basically just get back my money (actually 40$ loss).
11 replies (most recent on top)
@1f8 Thanks very helpful !
@1f7 looks like the math was wrong.
If you put the max $10625 towards Espp, during the last period. You will get back $10625 - $9248, which is calculated as (85 * $108.8). And the difference is roughly $1377, and it will be in your next paycheck and yes it is not taxed, and no it won’t be carried forward to the next period.
@1f7 the ESPP purchase is with after tax $. So the refund is not taxed.
The money will be added to your next paycheck.
It will not be carried forward to the next cycle.
Hope that helps
@a2 Will we get it as pay ? Or will it be added to the ESPP balance for the next purchase on October ? It won't be taxed right ? It will be a straight 1570 ?
@bg 12500/price == 10625/discounted price
@as close but it’s 12500 / price at beginning of offering, which is why number of shares are lower than previous ESPP periods.
@av if you sell Espp the same day, irrespective the stock price on the start or the end date of the offering period. You will bag 15% profit for the fixed #of shares.
Why leave it on the table. Sell and invest elsewhere, based on your preference and logic.
Simply leaving 15%, just because we don’t like our QCOM stock so much (or haven liked it for some time ;)) doesn’t mean we should be emotional when making money math. 15% is good money.
Why are you buying Q's stock? It is going further down.
@a6 nothing has changed (other than the one time 8 month window), it has always worked like this and has happened before. The max number of shares is fixed by the period opening price (10625 / discounted price). Since the price is down so much that doesn't consume the full 10625 if you maxed it out so you'll get a refund through payroll in a few weeks for the unused funds. @a2 is correct.
@a2 Thanks for the reply. Before, I was getting everything on E-Trade. So now they are paying the 15% discount through the paycheck, is this correct? I think the old way is much better, this creates confusion.
@OP you got 85 shares at ~$108.8 (buying price ~$9248).
But but it is worth is $10818, which is 85*127.28 (FMV 1st April).
You will get back ~$1570 in the next paycheck, since the ESPP period closing price of stock was lower than the period starting price.