Fidelity Study Shows Half of ESPP Participants Sell

A new Fidelity analysis shows that about half of all participants in employee stock purchase plans (ESPPs) sell their stock on exercise. The findings are based on a Fidelity analysis of more than 365,000 workers over a three-year period. Employees under 40 years old and those getting larger discounts on the shares are more likely to sell, although the differences are not large. Workers used the proceeds responsibly, often to pay debt, make home improvements, save for retirement, or for an emergency fund.