Financial Dictionary
Atlantic Financial
Atlantic Financial
Investment
Word
An Employee Stock Ownership Plan (ESOP) is a qualified, defined contribution,
employee benefit 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 used to align
the interests of a company's employees with those of the company's shareholders.
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Employee Stock Ownership Plan
