I work for a company that offers an ESPP. Employees can put money toward the plan throughout the first half of the year, and it is converted to stock at a 15% discount at the end of Q2.
Stock can be sold immediately, so there's little risk involved from stock price volatility. My question is, what happens if the company goes bankrupt, is sold, or fails completely while money is set aside for ESPP purchases before the end of Q2? Is there a chance that I could lose the money before it's converted to stock, or is it protected from being used for other purposes (including paying creditors or bondholders)?