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Employee Stock Ownership Plan

By , About.com Guide

Definition: An employee stock ownership plan is a tool that companies use to increase employee feeling of "ownership" in a business, and therefore productivity. It is a trust fund established by the company in which employees can purchase stock in the company, most of the time, at discounted prices, usually at least 15% off the current market value.

There are risks. For more information, read Investing in Your Employer's Stock.

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