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

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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.


Definitions:

Chi-Square Test

A statistical method used to determine if there is a significant association between two categorical variables.

Expected Frequency

The predicted number of times an outcome is expected to occur in a statistical experiment based on the probabilities of all possible outcomes.

Sample Size

The number of observations or data points collected in a sample for the purpose of statistical inference.

Contingency Table

A data table that displays the frequency distribution of variables to analyze the relationship between categorical variables.

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