What Is an Employee Stock Ownership Plan (ESOP)? An employee stock ownership plan (ESOP) is an employee benefit plan that gives workers ownership interest in the company in the form of shares of stock. ESOPs give the sponsoring company—the selling shareholder—and participants various tax benefits, making them qualified plans, and are often used by employers
What Is an Employee Stock Purchase Plan? An employee stock purchase plan (ESPP) is a company-run program in which participating employees can purchase company stock at a discounted price. Employees contribute to the plan through payroll deductions which build up between the offering date and the purchase date. At the purchase date, the company uses
What Is an Estate? An estate is everything comprising the net worth of an individual, including all land and real estate, possessions, financial securities, cash, and other assets that the individual owns or has a controlling interest in. Key Takeaways An estate is the economic valuation of all the investments, assets, and interests of an individual.The
Task Considerations 1. Make a list of all your assets. Be sure to include any physical assets like real estate and precious metals along with any bank accounts, insurance policies, and annuities. 2. Make a list of all your debts. This list should include everything you owe, including any loans. 3. Make copies of your
What Is an Estate Tax? The estate tax is a federal tax levied on the transfer of the estate of a person who dies. An estate tax applies when the value exceeds an exclusion limit set by law. Only the amount that exceeds that minimum threshold is subject to tax. Assessed by the federal government and
What Is an Estimated Current Return? Estimated current return is the return that an investor can expect for a unit investment trust over a short period of time—for instance, annually. It is actually an estimate of the interest that the unit holder can expect to receive. The return can be found by taking the estimated
What Is Estimated Recovery Value (ERV)? Estimated recovery value (ERV) is the projected value of an asset that can be recovered in the event of liquidation or winding down. The estimated recovery value (ERV) is calculated as the recovery rate times the book value of the asset. Estimated recovery values can vary widely depending on
What Is Estimated Long-Term Return? Estimated long-term return is a hypothetical measure that forecasts an investor’s expected return over the life of an investment and is typically quoted for fixed-income investments with a fixed duration. Key Takeaways Estimated long-term return is a hypothetical measure that forecasts an investor’s expected return over the life of an
What Is Estoppel? The term estoppel refers to a legal principle that prevents someone from arguing something or asserting a right that contradicts what they previously said or agreed to by law. Put simply, estoppel prevents one person from contradicting an action or statement from the past. It is part of common law and is
What Is an Exchange-Traded Fund (ETF)? An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund. Typically, ETFs will track a particular index, sector, commodity, or other assets, but unlike mutual funds, ETFs can be purchased or sold on a stock exchange the same way that a
