Investor Glossary-employee stock ownership planInvestor Glossary-employee stock ownership planInvestor Glossary-employee stock ownership planInvestor Glossary-employee stock ownership planInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Employee Stock Ownership Plan

The HTML to link to this page
 

Employee stock ownership plan (ESOP), also known as stock purchase plan, is a program designed to promote purchasing of company stock by the employees. The distribution of stock though an employee stock ownership plan is facilitated by the employee stock ownership trust, which represents actual accounts through which stock is bought and sold. An employee stock ownership plan is a powerful promotional tool. By making an employee stock ownership plan available, companies enable employees to participate in the management of the company. Furthermore, financial incentives and rewards associated with an employee stock ownership plan forge a synergy of interests between employees and shareholders. Corporations that set up an employee stock ownership plan are eligible for tax deductions for employee stock ownership plan dividends for participating employees. An employee stock ownership plan also grants deductions for dividends intended to repay stock acquisition loans.



Rate this Employee Stock Ownership Plan definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, balance sheet, VIX, implied volatility, current ratio, reverse mortgage, risk management, minority interest, option premium, inflation, EBITDA, average price per share, ex-dividend date, annual return, 144a, wholly-owned subsidiary, irrevocable trust, Key Rate Duration, APR, stock split, debt service coverage, deferred tax, 1031 exchange, LIBOR, real GDP, Zero Cost Collar, liquidity ratio, 1035 exchange, FTSE, phantom income, covered put, in escrow, stock market close, per diem, margin rate, open position, quality assurance, dividends payable, deferred revenue, required rate of return, FICO score, retained earnings, diluted share, 401a, class C shares, ex-dividend, command economy, limit order, cancelled check


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use