A stock plan is a document where all the terms and conditions of a stock plan are laid down, especially an employee stock plan, where all or some employees can buy the company’s stock at a particular price for a particular period. Some stock plans have restrictions on the sale or transfer of the stocks once the investor owns them, while others are like retirement plans and offer a wide portfolio of investment options. Stock plans must follow the law of the land.
All stock plans are a form of sharing a company’s profits with the investors or certain employees of the company. Stock bonus plans give the employees shares as part of a benefits package which they can trade, sell or transfer. Every company has a stock plan administrator who is like a contact between the employees and the legal or payroll department and takes responsibility of recording all the information when an employee buys or exercises stock option plans.
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Sample Stock Plan Agreement
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