Equity participation in real estate can also be referred to as corporate participation or employee participation. For this purpose, equity is invested in a company as an employee in order to be entitled to a profit share.
Employees can therefore be involved in the capital of the manufacturing enterprise. Indirectly, participation works through investment companies or funds. As a rule, however, it is employee participations that are meant by the term. However, a distinction must be made between equity participation and profit sharing.
The object of a shareholding is that an employee brings money into “his” companies. This allows him, for example, to prove his loyalty to his employer or to choose to do so for other reasons. This shareholding competes with other forms of investment and is drawn from taxable remuneration.