KSOP

A retirement plan equivalent to an employee’s stock ownership plan (ESOP) and a 401(k). In the qualified retirement plan, the firm matches their employees’ contributions with stock. Companies can gain benefit from KSOPs by reducing expenses that could arise from handling an ESOP and 401(k) retirement plans separately. Acquiring a KSOP is a good move for companies when its shareholders consider to sell their shares. It will create a market with enough liquidity. It also boosts the motivation of the employees for them to guarantee their company’s profitability.