Sharon's employer offers a defined contribution plan. The firm contributes stock shares to a trust in hopes of aligning employee interests with the interest of the firm. Sharon is most likely invested in a(n) ________.

Question

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A) An employee stock option plan (ESOP) is a plan in which a firm contributes stock shares to a trust. The trust then allocates the stock to participating employee accounts according to employee earnings. ESOP advocates have promoted employee ownership plans as a means to align the interests of workers and their companies to stimulate productivity.

Sharon's Employer Offers a Defined Contribution Plan