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


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