A Stock Purchase Plan (SPP) is a program offered by companies that allows employees to buy shares of the company's stock, often at a discounted price. This plan encourages employees to invest in the company and align their interests with shareholders. Typically, employees can contribute a portion of their salary to purchase stock, usually through payroll deductions. SPPs can vary in structure, but they often include features like a set purchase period and a maximum contribution limit. Some plans may also offer a matching contribution from the employer, enhancing the benefits for employees who participate.