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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | 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