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Tip of the Day "Fee-Only" is Your Friend

"Fee-Only" is Your Friend - Unlike financial advisors that work on a fee-base or commission-base service, "Fee Only" based advisors are the only ones legal obligated to act in your...

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Stock Purchase Plan

Stock purchase plan - A stock purchase plan is also known as an employee ownership plan. A stock purchase plan is set up so that employees can buy shares in the company they work for. The company forms the trust so that their employees can deposit money into the plan for the purchase of company stock. The employer may even match dollar for dollar. The fund is tax qualified because its contributing employees are part owners in the company. Taxes can be collected immediately or they can be deferred depending on the set up. The fund then becomes a retirement fund similar to the IRA and 40K1 plans but the condition is that the contributions are invested in the company stock. The company benefits due to the increasing cash flow, tax savings and dedicated employees. Stock purchase plans are regulated and have several restrictions.

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Definition of the Day Block Positioner

Block Positioner - A block positioner is a member who is registered in the Securities and Exchange Commission, and who deals, sells, securities while taking a long or short position with stocks and bonds. A block positioner takes this stance with the hopes that he or she will net a...

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