Employee Stock Ownership Plan |
| A plan devised to encourage employees to purchase stock in their company usually at a price below the market price. The company benefits from increased cash flow, tax savings, and a more motivated workforce. The employees benefit from the ability to share in the company's success while saving in a tax-efficient way. Due to the tax benefits, the administration of ESOPs is regulated, and restrictions apply. Also known as a stock purchase plan. |
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