Employee Stock Purchase Plans Quiz

Employee Stock Purchase Plans Quiz

How much do you know about your employee stock purchase plan?

Please answer the following 10 questions. This quiz is also a course of study. The answer key links to content on the topic for follow-up reading. For in-depth courses of study that offer CE credits, see the myStockOptions Learning Center.

1. What is an employee stock purchase plan?

2. Which of the following is an employee stock purchase plan that is tax-qualified for special treatment under the Internal Revenue Code?

3. What benefit does an employee stock purchase plan offer if it meets certain qualifications set by the Internal Revenue Code?

4. What happens during an offering period?

5. Can you withdraw from an employee stock purchase plan at any time?

6. When stock is purchased in an employee stock purchase plan that is not tax-qualified under IRC Section 423, what is the tax treatment of the spread between the actual purchase and the market price at purchase?

7. What is the purchase price based on if the plan has a lookback feature?

8. In a tax-qualified employee stock purchase plan, what is the maximum amount of stock you can purchase during one calendar year?

9. When are participants taxed in a tax-qualified employee stock purchase plan?

10. How long do you have to hold stock in a tax-qualified employee stock purchase plan to get favorable treatment of capital gains?

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