What is the difference between stock options and employee stock ownership plan (ESOP)?
A) Stock options carry significant risk whereas ESOPs are risk-free.
B) Stock options are usually used with top management whereas ESOPs are provided to all employees.
C) In stock options, stocks are placed into a trust whereas ESOPs give employees the right to buy a certain number of shares of stock.
D) Under stock options, employees can sell their stocks whereas ESOPs do not allow employees to sell their stocks.
E) Earnings from stock options are exempt from income taxes whereas earnings from ESOPs are taxable.

Question

Quizplus · Accepted Answer

Employee participation can contribute to the success of an incentive plan.

What Is the Difference Between Stock Options and Employee Stock