Employee Stock Ownership Plan - ESOP
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Definition of 'Employee Stock Ownership Plan - ESOP'
A qualified, defined contribution, employee benefit (ERISA) plan designed to invest primarily in the stock of the sponsoring employer. ESOPs are "qualified" in the sense that the ESOP's sponsoring company, the selling shareholder and participants receive various tax benefits. ESOPs are often used as a corporate finance strategy and are also used to align the interests of a company's employees with those of the company's shareholders.
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Investopedia explains 'Employee Stock Ownership Plan - ESOP'
Employee stock ownership plans can be used to keep plan participants focused on company performance and share price appreciation. By giving plan participants an interest in seeing that the company's stock performs well, these plans are believed to encourage participants to do what's best for shareholders, since the participants themselves are shareholders.
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Discover how to transfer your company's net worth to the next generation of entrepreneurs.
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Learn the different accounting and valuation treatments of ESOs, and discover the best ways to incorporate these techniques into your analysis of stock.
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Many retirement plans include the offer to purchase company stock. Doing so has its advantages, but there are drawbacks too.
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In 2009, Senators Carl Levin and John McCain introduced a bill to stop the excessive deductions for ESOs. But is there another solution?
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If your business administers a retirement plan, you should recognize what's at stake.
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Perhaps the real cost of employee stock options is already accounted for in the expense of buyback programs.
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If you're new to the stock market and want the basics, this is the tutorial for you!
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the most extensive stock option site out there. Includes calculators, articles, discussion boards and more.
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