Example. The Humble Pie Company offers its stock to employees at a 20 percent discount from the market price. Deductions are made from employee paychecks to cover the cost of shares. Sally Reed has chosen to have $10 deducted from her pay on an ongoing basis in order to buy this stock. During the first pay period, company stock is publicly traded at $17.50, so the price at which Ms. Reed can buy it from the company is $14, or ($17.50 market price × (1–20%)). However, the deduction is not sufficient to purchase a share, so the company places the funds in a holding account until the next pay period, when another $10 brings the total available funds to $20. The company then deposits one share of stock in the account of Ms. Reed and transfers $14 to its equity account, leaving $6 on hand for the next stock purchase.