Employee Stock Ownership Plans (ESOP)

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An Employee Stock Ownership Plan (ESOP) is a tax qualified defined contribution retirement plan regulated under ERISA and the Internal Revenue Code. An ESOP is a special type of retirement plan because it is designed to invest in securities of primarily one company - the sponsoring employer and is the only retirement plan that can borrow money to acquire employer securities.

ESOPs offer strategic and structural features that can help accomplish various objectives of companies and their shareholders, including:

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