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Business Preservation Planning

Phantom Stock Purchase

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Phantom stock is a contractual agreement between a corporation and recipients of phantom shares that bestow upon the grantee the right to a cash payment at a designated time or in association with a designated event in the future, which payment is to be in an amount tied to the market value of an equivalent number of shares of the corporation's stock¹. 

(1) Phantom stock - Wikipedia.

(2) Phantom Stock Plan: What It Is, How It Works, 2 Types - Investopedia.

(3) What Is Phantom Stock? - The Balance.

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