Employee Stock Ownership Plan

Definition: an Employee Stock Ownership Plan is an organized employee-owner scheme for employees and/or managers to buy shares of their company's stock at a discount or otherwise attractive terms. Usually it is a tax efficient way to provide such motivational benefit. For the organization, an ESOP is a method to achieve employee ownership by allowing employees to participate financially in their own organization by becoming shareholders.
Is also referred to as 'stock purchase plan'.

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