A Liquidation of a Corporation Always Is a Taxable Event

question 64

True/False

A liquidation of a corporation always is a taxable event for the shareholder(s) of the liquidated corporation.

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Definitions:

Boeing

An American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide.

Risk-Free Rate

The return on an investment with no risk of financial loss, typically represented by the yield on government Treasury bonds.

Well-Diversified Portfolio

A portfolio spread out over many securities in such a way that the weight in any security is close to zero, resulting in negligible diversifiable risk.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be eliminated through diversification.