Noncompensatory Stock Purchase Plan

Under U.S. GAAP, certain stock options and stock purchase plans may not be intended primarily to compensate employees. For example, a corporation may wish to raise capital or diversify ownership of its stock among its employees or officers. Where the difference is no larger per share than that in an offer to all shareholders for the purpose of raising the same amount of capital, there is no compensation involved. See also stock option and compensatory stock option plan.