Since 1978, Iowa has had a so-called bottle bill. Like similar laws in other states, Iowa requires a five cent deposit on many beverage containers which is refunded when the containers are returned to a redemption center. Iowans are encouraged to recycle the containers not covered by the bottle bill. Recycling and redemption are important components in controlling litter.
Recycling and redeeming are also important to Employee Stock Ownership Plans (ESOPs) and can create opportunities for financial professionals.
Most ESOPs require that when a participant has a distribution event that they are paid out in cash and the shares are sold back to plan or the company. Either approach gets cash to the participant, but the impacts on the plan and the company are very different.
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