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Employee Stock Purchase Plan (ESPP)

A type of broad-based stock plan that permits employees to use payroll deductions accumulated over a purchase period of one, three, six, twelve, or more months to acquire stock from the company, often at a discount or at least without commission. One popular type of plan is a Section 423 ESPP, named after the section of the Internal Revenue Code that governs it. For more, see this website's section on ESPPs.

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