The Use of § 351 Is Not Limited to the Initial

question 71

True/False

The use of § 351 is not limited to the initial formation of a corporation, and it can apply to later transfers as well.

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Definitions:

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bonds), or rights to ownership as represented by an option.

Nonresident

An individual or entity that does not reside within a particular jurisdiction, often affecting tax and legal responsibilities.

Private Securities Litigation Reform Act

A 1995 U.S. federal law aimed at reducing frivolous securities litigation, mainly by imposing more stringent requirements on plaintiffs.

Meaningful Cautionary Statements

Specific disclosures or warnings that are significant and clear enough to alert individuals about potential risks or dangers.