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Erin Hall, a Minnesota attorney, discusses phantom stock plans in this video. A phantom stock plan is a contract where the owner or beneficiary can receive a payout based on the company's value in the future. The company's value is determined by an independent appraisal service, incurring costs. This plan allows business owners to provide ownership interest to employees without transferring real ownership. Employees benefit by receiving value from the company's sale, whether through acquisition or closure.
