Non leverage ESOP contributions

[Guest natasa]

Hy!

I have a question regarding contributions to a nonleveraged ESOP: the contributions can be made either in cash or in stock. From where a company takes cash to put it in ESOP (I assume that one option is from annual company profit, are there any other options?) and from where stocks (I assume again that one option are newly issued stocks, I read somewhere that company can buy stocks from its owners or it can buy stocks from its shareholders?) Can you please explain more detailed.

Thanks.

Natasa (Slovenia)

[BeckyMiller]

Natasa - I suggest that you go to www.nceo.org and select the ESOP pages. There is a lot of great education tools there on understanding ESOPs.