TriggerHappy0071 OP t1_iujqc1t wrote on October 31, 2022 at 9:11 PM

Reply to comment by penguinise in Should I enroll in my company's ESPP and sell immediately? by TriggerHappy0071

Great thank you for the answers. I assume the risk of the company stock dropping >15% during that administrative delay is very low then? Thank you!

penguinise t1_iujqvp2 wrote on October 31, 2022 at 9:15 PM

>I assume the risk of the company stock dropping >15% during that administrative delay is very low then?

Generally yes. Obviously anything is possible, but it is very unlikely - especially if (as ought to be the case) your company is not reporting earnings during those few days.

TriggerHappy0071 OP t1_iujriwu wrote on October 31, 2022 at 9:20 PM

Great thanks, and should I be concerned about this in the booklet?

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.

Is this typical and would it mean that I have to wait some arbitrary amount of time before I am permitted to sell?

penguinise t1_iujt4b0 wrote on October 31, 2022 at 9:32 PM

I think that is saying that they won't permit you to ACATS the shares in-kind to another broker, so that they can no longer track them for tax purposes. There is interplay because selling the shares generates ordinary income which is customarily reported on your W-2.

I would not be concerned about a minimum holding period until a specific policy is actually announced. It's normal not to have one.