A Stock Purchase Plan is a compensation program offered by some companies to their employees, allowing them to purchase company stock at a discounted price, often through payroll deductions. This plan is designed to encourage employee ownership and align their interests with the company's performance.

Example
Company XYZ offers its employees a Stock Purchase Plan (SPP), enabling them to buy shares of the company at a 15% discount from the market price. Employees can contribute a portion of their salary towards purchasing these shares, which are held in a dedicated account. This not only fosters a sense of ownership among employees but also provides them with a potential financial benefit when the stock price appreciates.