In this lesson, you will learn about employee stock ownership plans (ESOPs).
Owning a piece of the company they work for is a dream many Americans share. One of the ways this becomes a reality is through an employee stock ownership plan or ESOP.
An ESOP is a qualified retirement plan that transfers shares of company stock to employees. Unlike most other plans we have discussed in this book, an ESOP must include all full-time employees.
ESOPs are frequently confused with employee stock "option" plans. Although the two may accomplish some of the same goals, they are completely different in structure and administration.
ESOPs are basically a means of transferring ownership of a ...