Company has 15% discount on shares/stock

[amopabila]

The new company I started with offers 15% discount on shares/stock. Meaning that if the stock price is currently $10.00, employees can buy it for $8.50 and theoretically resell it at a profit.

[AndrewFeawn]

So at the bar a finance guy I was chatting with said that if I consistently buy/sell the stock over a period of ten months I can make 400% profit since I'm re-investing the 15% I made from one trade onto the next trade.

[Andrewsolkaf]

So is there any truth to this, or are there some hidden penalties....seriously it's the first time I'm hearing about something like this.

[AnettaHouri]

Heh...that guy obviously has never traded. Of course you can give it a shot but I would bet there are selling restrictions...meaning you might be required to hold for certain amount of time. Also...prices move so any amount of time you have to hold your at risk...also you need to be buying enough to overcome the transaction fees. And, how is that buy order going through? What price will it get filled at...and where are the shares at and how will you execute a sell order and at what price? on and on.

[Angeladom]

Usually the purchase date is predetermined so if you say you want to buy it today, it may not actually be until X months from now. Also they tend to have selling restrictions that can be anywhere from several months to several years.