### Question
What is the definition of employee stock purchase plan?


### Answer
The definition of **employee stock purchase plan** is as follows in *26 U.S.C. § 423*:

> a plan which meets the following requirements:


(1) the plan provides that options are to be granted only to employees of the employer corporation or of its parent or subsidiary corporation to purchase stock in any such corporation

#### Citation:
  - *26 U.S.C. § 423*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART II-CERTAIN STOCK OPTIONS**

