GettyAn employee stock purchase plan (ESPP) buys company stock for participants at set intervals, usually every six months. With stock options the exercise (purchase) price is the market price at the time of grant regardless of whether the stock price has fallen or risen since grant. By contrast, at many public companies stock options and restricted stock units are granted only to certain employees and executives. According to Fidelity’s data, employees with ESPP purchase dates when stock prices were low have realized substantial gains in the rebound. stock price was still higher on purchase date), while 68% used for the calculation the lower price on the purchase date.

Source: Forbes June 30, 2020 14:03 UTC