TLDR Web Dev · OPINIONS & ADVICE

WHAT I WISH I KNEW ABOUT ESPP AND RSUS SOONER

blog.demofox.org10 min read

Summary from the TLDR Web Dev newsletter

ESPPs (Employee Stock Purchase Plans) let you buy company stock at a discount, which can be profitable if the stock price rises. RSUs (Restricted Stock Units) are promised shares that vest over time. When they vest, their value becomes taxable income. Use the ESPP discount to buy shares, then immediately sell for a profit if you don't believe in the stock's long-term growth. For RSUs, if you don’t want the stock, sell them immediately upon vesting. This avoids price fluctuations and the tax implications of holding the stock.