What is EMPLOYEE STOCK OWNERSHIP PLAN (ESOP)?

In the United States, a program where a company provides shares of its COMMON STOCK to employees through a TRUST. The program builds employee ownership and aligns employee/investor interests, and creates a tax deduction for the company.

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Related Legal Terms
EMPLOYEE SHARE OWNERSHIP PLAN (ESOP), EMPLOYEE STOCK OPTION PLAN, EMPLOYEE PROFIT SHARING PLAN (EPSP), LEVERAGED ESOP, EMPLOYEE PENSION BENEFIT PLAN, REGULAR STOCK OPTION PLAN, SIMPLIFIED EMPLOYEE PENSION PLAN, STOCK SUBSCRIPTION PLAN, EMPLOYEE TRUST, STOCK BONUS PLAN


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