Numbers simplified for easy math.
My company offers an employee stock investment plan (ESIP). Twice a year I can purchase company stock for a 15% discount. I can buy up to $15k of stock per year. The stock currently trades at $20, meaning I can buy it at a price of $17. At that price I can acquire 882 shares. There is no holding period so I can turn around and immediately sell for $20, netting myself nearly $2650. I can only make purchases twice a year and I have to deduct evenly from each pay check, almost as it’s holding my after tax cash for the two purchase periods. The stock price used for purchase is the cheaper of the purchase dates price, or the stock price on the day six months prior (potentially getting a larger discount if the stock appreciates over the 6 months period).
Is this a free $2650 or am I missing something here? Is there any downside other than tying up cash each pay check? Obviously numbers change as the stock price moves but this is a relatively non-volatile stock.