What does ASPP mean in PRODUCTS

The Associate Stock Purchase Program (ASPP) is a type of stock purchasing plan offered by many businesses to their associates or employees. It allows associates to purchase company stock at a discounted rate, and often includes other incentives and bonuses for doing so.

Most businesses that offer an ASPP have eligibility requirements that must be met in order to qualify, such as length of employment and/or salary requirements. Additionally, some employers limit participation based on job classification or position within the organization.

There are several advantages associated with participating in an ASPP including potential share price appreciation over time, tax advantages due to lower cost basis for shares purchased through the program, and dividend payments from shareholder distributions. Additionally, participation in an ASPP can signal loyalty to your employer which could lead to additional career growth opportunities down the road.

If you're interested in taking part in your employer's ASPP, you should contact your Human Resources department or check your employee portal for more information on how to enroll in the program. Once enrolled you will need to determine how much money you would like contribute each month towards purchase eligible shares of your employer's stock. The amount that can be contributed each month is usually determined by your current salary and any restrictions set by your employer.

Yes — most programs involve restrictions regarding when shares purchased through the program are eligible for sale as well as who has authority over such sales (the employee vs their employer). Additionally, additional taxes may be applicable if holdings are sold before they have been held for more than one year.