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WHAT IS A ESOP

An Employee Stock Ownership Plan or ESOP. An ESOP provides a way to vest ownership in a Corporation to its employees. In An ESOP a Corporation provides its employees with ownership shares in the company with no up front costs.

Corporations use ESOPs as part of an employees remuneration. Shares of a Corporation may be held in an account for the employee. When the employee leaves the company they can sell the stock which has accumulated over time.

ESOPs are part of an employee's retirement plan and are regulated by the US Internal Revenue Service.

 
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