What are ESOPs? Video Lecture | Stocks, Bonds, Equity and Valuation : Complete Knowledge - Entrepreneurship

an ESO PE or employee stock ownership
plan is an employer-sponsored stock
purchasing plan that rewards employees
by giving them shares of the company it
benefits employees that show an interest
in that company's value in markets the
ESO pea plan is established by the
company holding contributions from
borrowed funds or from within the
company and distributed to employees in
their names as shares any employee aged
21 years or older can join any SRP after
having worked a calendar year and in
order to take their assets in the event
they were to leave the company they
often have to work a certain number of
years beforehand businesses benefit from
ESO PS as transferring partial ownership
of the company to their employees yields
great tax benefit it benefits employees
because they can accumulate shares
within a company without having to make
out-of-pocket contributions and if an
employee retires becomes disabled or
falls under hardship they can take their
shares under these circumstances if
you're an employee and your company has
an ESO PE it could be very beneficial
for you if you took advantage of it you
can have shares in a company you can
sell later or you and other employees
can take over if you own the majority of
shares it also provides a retirement
fund with virtually no risk to you
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