What are Employee Plan Services?

by | Mar 28, 2023 | Financial Services

If you are a company that is offering stock to investors, it may also make sense to utilize a company that offer employee plan services as well. Learn more about what these services are below.

Employee Plan Services: What Are They?

Employee plan services (also known as employee equity plans) allow employees of your company to buy stock in the company, often at a discount than what is offered to the general public. This discount can be as much as a 15% discount below market value. Such a company that provides these services will often provide the business with a portal that enables both the employees and the management to access the portal to check on their investments, while also allowing the synchronization of share distribution with a company’s transfer agent.

Why Your Business Should Invest in a Third Party For These Services

Third-party administrators of these plan services usually have a great deal of experience in handling these services. They know how to manage the online portals that enable all parties to be able to securely access the portal, check out their individual investments, and make adjustments to the share distribution if needed.

Trying to do this manually on your own will involve a great deal of time and money to research and develop your own portal. As your business grows, managing such investment plans becomes more time-consuming and difficult, which is why it is often best to invest in the services of a third party to operate and manage it for you and your employees.

EquityTrack provides employee plan services and other stock and capital-raising services for both private and public companies. See how we can help your business manage plans and more at https://www.equitytrack.co/.

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