### Question
Can you define what employee stock ownership plan means?


### Answer
**Employee stock ownership plan** is defined as the following in *29 U.S.C. § 1107*:

> an individual account plan—


(A) which is a stock bonus plan which is qualified, or a stock bonus plan and money purchase plan both of which are qualified, under section 401 of title 26, and which is designed to invest primarily in qualifying employer securities, and


(B) which meets such other requirements as the Secretary of the Treasury may prescribe by regulation

#### Citation:
  - *29 U.S.C. § 1107*
  - Heading: **CHAPTER 17-COMPREHENSIVE EMPLOYMENT AND TRAINING PROGRAMS > SUBCHAPTER I-PROTECTION OF EMPLOYEE BENEFIT RIGHTS > Subtitle B-Regulatory Provisions > part 4-fiduciary responsibility**

