In an Employee stock ownership plan, a company sets up a _____ into which it contributes new shares of its own stock or cash to buy existing shares

Question

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In an Employee Stock Ownership Plan (ESOP), a company establishes a trust fund into which it contributes new shares of its own stock or cash to buy existing shares. This setup allows employees to become beneficial owners of the stock in their company.

In an Employee Stock Ownership Plan, a Company Sets Up