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What Is a Stock Redemption? What Are Some of the Reasons

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What is a stock redemption? What are some of the reasons for making a stock redemption? Why are some redemptions treated as sales and others as dividends?


Definitions:

Infant Mortality

Average number of infant deaths per 1,000 live births in a particular population.

Capitalism

An economic system based on the laws of free market competition, privatization of the means of production, and production for profit.

Privatization

The process of transferring an enterprise or industry from the public sector to the private sector.

Means of Production

The resources and tools used to produce goods and services, including land, labor, and capital, a concept central to Marxist theory.

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