Which of the Following Class of Stock Is Not Allowed

question 98

Multiple Choice

Which of the following class of stock is not allowed to be used in a section 351 transaction?

• A) Voting common stock.
• B) Nonvoting preferred stock.
• C) Voting preferred stock.
• D) All of these classes of stock can be used in a section 351 transaction.

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Definitions:

Conspiracy Laws

Legislation aimed at penalizing agreements or plans made among individuals or groups to commit unlawful acts or to harm the public interest.

Pension Plans

Financial programs established to provide retirees with income, often sourced from employers or unions, typically funded through employee and employer contributions over the employee's career.

Clothing Trade

The clothing trade involves the production, distribution, and sale of apparel and accessories through various markets and industries globally.

Center

Typically refers to the middle point of something or a position of neutrality or moderation in political contexts.