This is what happens when you enroll in your Employee Stock Purchase Plan (ESPP) and max it out:
You Pay $21,250 (money gets deducted from your paycheck after-tax)
You Get $25,000 (employer buys company stock at a 15% discount during purchase period)
With a 15% discount, you get $3,750
You sell the stock immediately to lock in the “gain” and diversify.
That $3,750 is added to your W-2 income.
You just got “free money”