Employer Stock Options

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If an employer offers a 5% discount to purchase company stock, but the stock never moves very much ($35-40 over the past few years), is it a good or bad investment?

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Are you asking whether it *is* a good investment, or *was* a good investment? We know enough to answer the latter question but not really the former. Generally speaking though, it's free money and you should take it.

The problem is that 5% is not very good compared with most such stock plans. But like I said it is free money.

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5% isn't that good I know. I just don't see it ever taking off.

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Is there a dividend yield?

Also, can you buy in and then immediately sell out?

Sounds like your talking about an ESPP (employee stock purchase plan) rather than "Options." At my place of employment, we get a 15% discount AND at the end of each 6 month period we purchase at the lower of the stock price on Jan 1 or Jun 30. So if it was $10 Jan 1 and closed at $20 Jun 30, we would use our previously withheld money to purchase shares at $10 less 15%, so $8.50. And instantly in that case you have over a 100% return b/c the stock is trading in the $20's.

I always participate, and you probably should too...even if I plan to sell immediately after I get my shares and take the 15% return (albeit it is an disqualifying sale and is taxed as ordinary income). The only risk is the time it takes to have the shares available for sale after the 6-month period. If it cuts off June 30, you might not get the shares deposited until say July 20. For those 20 days....you are at full risk.

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I am new to it so I don't know much about it.

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Find out more, then come back and bump this thread.