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Why Does Stock Redemption Treatment for an Individual Shareholder Produce

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Why does stock redemption treatment for an individual shareholder produce more favorable tax consequences than a dividend?


Definitions:

Relational Databases

A database design that identifies the relationships between stored data elements.

Top-down Design

A design methodology that breaks down a system into smaller parts in order to understand, manage, and implement a complex system.

Object-oriented Analysis

Object-oriented Analysis is a computer programming methodology that focuses on defining the types of objects that system operations can apply to rather than the logic of the operations themselves.

Inheritance

In object-oriented analysis, the ability of a new class to automatically pick up all the data and methods of an existing class and then extend and customize those to fit its specific needs.

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