What does 'E' stand for in ESOP?
What does 'E' stand for in ESOP?
Solution
✅ Correct Option: 1
In ESOP, 'E' stands for Employee.
ESOP is the abbreviation for Employee Stock Option Plan. It is a scheme where a company grants its employees the option to purchase a specified number of shares at a predetermined price (exercise price) within a given time period.
This benefit is typically offered to retain key employees and align their interests with the company's growth, as employees become part-owners when they exercise these options.
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