Do you own shares of your employer?

[Zanza]

So my employer offers to sell shares to the employees. The advantage of that is that you can do it with your gross salary, so you save taxes. Other than that, it is not really cheaper than just buying them normally. I wonder if it makes sense. The tax savings is nice of course. But investing in your own employer is about the worst thing you can do regarding having a diverse, risk-spreading portfolio, right?

[Jaron]

I'm the primary shareholder of Jaron.

[DGuller]

Yes, it's not a good idea to buy your employer's shares without a subsidy of some sort.  That reminds me that I need to look into selling off some of my company's stocks that recently got vested.

[MadImmortalMan]

My company is not publicly traded. My wife participated in the ESPP at Microsoft for about seven years but no longer does. The last company I worked for that had such a plan was Compaq in the mid-90s. I sold all of my holdings before the HP merger and haven't bought shares of any employer since.

[Scipio]

I own 500 shares.

[Monoriu]

I don't, for obvious reasons 

But given the high taxes in Germany, I think that alone will make it a good idea. 

[Razgovory]

Not a share per say, but I do own a small piece of a former employer.  Half of a finger bone in fact.

[Valdemar]

I used to at a former employer. Some I had before I joined them, some was given as employee benefits. Made a nice sum when the company was finally sold (long after I left them) since the shares had been given at a discount, but sold (or rather forced into liquidation) at market price plus a mark up.

V

[Zanza]

I don't, for obvious reasons 

But given the high taxes in Germany, I think that alone will make it a good idea. 

I am not sure whether it lowers my gross salary just for taxes or also for social security payroll deductions.
If it is the latter, that would be really sweet as I would be able to buy a couple of shares at about half their price - otherwise I still get them at about 2/3 the price.
But if I calculate it correctly, it only makes sense for a small amount of shares as that gives me the highest amount of savings. 

[Eddie Teach]

Not a share per say, but I do own a small piece of a former employer.  Half of a finger bone in fact.

In this case the commies are right- "ownership" is theft.

[Razgovory]

Not a share per say, but I do own a small piece of a former employer.  Half of a finger bone in fact.

In this case the commies are right- "ownership" is theft.

Well technically I don't own it.  Legally you can't own any person or piece of a person.  I just have it in my possession. 

[Tamas]

I would get some nice subsidy on them if I was living in the right country. 

[Zanza]

I would get some nice subsidy on them if I was living in the right country. 

I live in the right country. The employees in the foreign subsidiary where I am currently working don't get this offer either, only employees with a German contract.

I think I'll buy them. Getting them at 1/2 or 2/3 the price seems to be a no-brainer. I wonder if there is something I don't see. 

The downside is that I have to keep them until end of 2011 or otherwise the tax incentive is void and I have to pay that.

[Tamas]

I would get some nice subsidy on them if I was living in the right country. 

I live in the right country. The employees in the foreign subsidiary where I am currently working don't get this offer either, only employees with a German contract.

I think I'll buy them. Getting them at 1/2 or 2/3 the price seems to be a no-brainer. I wonder if there is something I don't see. 

If you are sure that your company will continue to grow then yes its a good thing. I mean, say you can get the stock with 4-5% discount, even if the stock price stagnates you would be at, or ahead, of a savings account.

[Caliga]

This reminds me that I need to enroll in my company's stock purchase program.  Thanks for the thread.