ESOP
Categories: Options, Stocks, Tax, Investing and Trading,
employee stock ownership plan: a plan sponsored by a company by which a trust holds stock in the company on behalf of employees and distributes that stock to employees. In the United States, stock can only be sold when an employee leaves the organization, and is thus thought of as a form of pension provision. In the United Kingdom, stock can be disposed of at any time. There are two types of employee stock ownership plans in the United Kingdom: the case-law employee stock ownership plan, which can benefit all or some employees but may not qualify for tax benefits; and the employee stock ownership trust.
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