Investor Glossary-profit-sharingInvestor Glossary-profit-sharingInvestor Glossary-profit-sharingInvestor Glossary-profit-sharingInsightful 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

Profit-sharing

The HTML to link to this page
 

Profit-sharing is an arrangement between an employer and employees in which the former shares part of its profits with the latter. Profit-sharing plans are a way to keep employee morale, loyalty, and retention up. Employees can be given stocks (often stock in the company they work for) or bonds, or cash. To determine how much an employee will receive with profit-sharing, the employer uses government-approved formulas. If the profit-sharing contributions are part of an employee's retirement plan (in which case they are received at retirement rather than now), they may be tax-deductible. There are eligibility requirements for profit-sharing plans; for example, the employee must work for the company for a certain period before he or she can partake in profit-sharing.



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


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