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Life · Chapter 11 · Defined Contribution Plans

Stock Bonus Plan

Definition
Like a profit-sharing plan, but contributions are NOT based on profits and benefits are paid in company STOCK — employees share in stock-price gains/losses and any dividends.
Easy to confuse with

These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.

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Verified against primary sources · 2026-08-10