> How does purchasing stock work?

How does purchasing stock work?

Posted at: 2014-12-05 
Yes, Company stock options allow an employee to purchase a stock at a specific price. Whatever that employee decides to do next is up to him/her.

It's a frequent occurrence for an employee to receive stock options at $5/share for example, and when the stock rises to $7/share, he exercises the options then immediately sells.

That may be possible, after all the comnpany is trying to give them an incentive and only a small percentage would sell immediately. However, more likely there will be a minimum holding period. Ask your HR dept.

That does sound like a good deal if it's available even if there's a lockup contract in there.

So to the employees that recieve 15% off of stock,

If they purchase stock can't they sell it back and earn free money?

Is it a hassle purchasing stock?

What do you need to purchase it?