Employers offer ESPP, wherein you make contributions to purchase stock at a discount, via deductions in your salary. The accumulated money is then used to buy stock for you. You get to buy the stock at a lower price than the market price.
Your employer is not required to withhold income tax when you exercise an ISO since there is no tax due until you sell the stock. Although no tax is withheld when you exercise an ISO, tax may be due later when you sell the stock. Plan for the tax consequences when you consider the consequences of selling the stock.
If you are reading this article, your company has issued stock options so that you can participate in the growth without any financial risk to you until you exercise the options. Many people who do not understand these options can leave money on the table.
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