My employer offers an ESPP program through which we can buy stocks with some discount. Assume the discount is D and the market price in the day when the stock is purchased is P. The stock is purchased at C = P * D(%).
When I input the buy transaction in Quicken, I can see the amount invested as the
C * # of stocks and the cost basis as
P * # of stocks.
What puzzles me, is that the gains and losses are calculated using the cost basis instead of the ESPP invested amount. So, even if the stock lost a smaller amount than D, Quicken shows that I have losses.
Shouldn't it be that the discount D is actually a gain? When I analyze my portfolio, which of the two prices of the stock I should use?