The experience of helping to develop a successful company vividly illustrates the example of NVIDIA employees. One of them, a "middle-level" employee, accumulated a fortune of $62 million through receiving company stock options. Such an option can be an excellent incentive for employees. However, another NVIDIA employee made a mistake of nearly a billion at the current stock price and lost money.
The first employee participated in the Employee Stock Purchase Plan (ESPP) for 18 years and firmly held onto them despite anything. He was not a high-ranking engineer, he simply took advantage of all the benefits of ESPP, which allows employees to use 10-15% of their salary to purchase company stock at a 15% discount from the market price.
As a result, the employee left the company with a stock package worth $62 million. It was probably difficult to hold onto these stocks without selling occasionally to get some cash, but he never sold the shares throughout his entire time at the company and as a result secured himself a more than solid "pension."
Another former NVIDIA employee once had a million company shares (one share is now valued at $882). Unfortunately, he had to sell his "green gold" to offset losses when his broker bought other stocks that then fell by 90%. A margin account allows the use of the value of one or more stock packages to purchase other stocks or financial assets. In this case, a forced sale from the margin account led to a loss.
Source: Tom`s Hardware
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