A public limited company proposes to increase its subscribed capital by offering new shares to employees at below market price. Such an issue is termed as ______.

Question

KollegeApply · Accepted Answer

A public limited company proposes to increase its subscribed capital by offering new shares to employees at below market price. Such an issue is termed as ESOP (Employees Stock Option Plan). Explanation: An ESOP allows a company to offer shares to its employees at a price lower than the market value. This is done as an incentive to retain employees and motivate them by making them part-owners of the company.

AChoose Your Answer