Employee Stock Ownership Plans

The employee stock ownership plans are basically a type of retirement plan. As per definition the employers provide a certain part of their shares in these plans. The basic aim of the employee stock ownership plans is to help the employees from a financial point of view.
The unique aspect of the employee stock ownership plans is that these stocks are not traded in the open markets. The employee stock ownership plans also provide the employees of a company with the right to purchase a certain stock of the company, they are working at.
In this case the worth of the stocks are already fixed. However, such offers are available only for a certain amount of time. The employee stock ownership plans are normally administered by governmental organizations.
For example, in the United States of America, the employee stock ownership plans are overseen by the Employee Benefits Security Administration of the U.S. Department of Labor.

Difference Between Employee Stock Ownership Plans and Employee Stock Option Plans

The employee stock ownership plans are different from the employee stock option plans. One of the major differences is that the employee stock option plans are not retirement plans like the employee stock ownership plans.

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