What is an ESOP?

An employee stock ownership plan (ESOP) is a unique strategy for business owners seeking liquidity. Using an ESOP strategy allows the business owner to sell a fractional amount or the entire business to the employees. Eligible employees will be allocated common stock over a period of time on a non-discriminatory basis. ESOPs are typically funded and sponsored by the company. In other words, the employees pay nothing for the shares other than time and dedication to the company.

Curious to know “What is an ESOP?” Watch our animated video for a simple, informative explanation.

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