Business Glossary

organized program for employees of a company to buy shares of its stock. The plan could take the form of compensation if the employer matches employee stock purchases. In some companies, employees are offered the chance to buy stock in the company at a discount. Also, a corporation can offer to reinvest dividends in additional shares as a service to shareholders, or it can set up a program of regular additional share purchases for participating shareholders who authorize periodic, automatic payments from their wages for this purpose. See also automatic investment program .

Another form of stock purchase plan is the Employee Stock Ownership plan (ESOP) , whereby employees regularly accumulate shares and may ultimately assume control of the company.

organized program permitting employees of a company to buy shares of its stock, sometimes at a discount. Could constitute an employee benefit if the employer matches employee stock purchases.