In General, If a Shareholder's Ownership Interest Is Not Diminished

question 98

True/False

In general, if a shareholder's ownership interest is not diminished as a result of a stock redemption, the Code will treat the transaction as a sale or exchange.

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Definitions:

Self-Fulfilling Prophecy

An anticipation that comes to pass as a result of a positive feedback loop between one's actions and beliefs, making it true either directly or indirectly.

Belief

An acceptance that something exists or is true, especially one without proof.

Fulfillment

The achievement of something desired, promised, or predicted, leading to satisfaction or happiness.

Self-Fulfilling Prophecy

The phenomenon where an individual's expectations about another person or situation cause that expectation to become a reality.