Employee Stock Ownership Plan

Description of Employee Stock Ownership Plan. Explanation.

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Definition Employee Stock Ownership Plan. Description.

Employee Stock Ownership Plan is an organized plan for employees or managers to buy shares of their company's stock at a discount or attractive other terms. Usually it is a tax efficient way to provide this motivational benefit. It is a method allowing employees to participate financially in their own organization by becoming shareholders.

The money to pay for the stock is normally withheld from the employee's salary. Compare: Employee Benefits.

Also referred to as Stock Purchase Plan.

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End of description Employee Stock Ownership Plan. An explanation.