A fund that invests primarily in employer securities that may also maintain a cash position for liquidity purposes. (transamerica.com)
L. 98 — 369, § 714 (j)(5), freed from withholding requirement any designated distribution which consists only of employer securities of the employer corporation (within the meaning of section 402 (a)(3)-RRB- and cash (not in excess of $ 200) in lieu of fractional shares. (gpo.gov)
It was made possible when Congress wanted to give American workers another option for growing retirement assets and so allowed for a 401 (k) plan to invest in Qualified Employer Securities — which then allows the individual to fund a business. (guidantfinancial.com)