Which of the Following Class of Stock Is Not Allowed

question 121

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) Voting preferred stock
• C) Nonvoting preferred stock
• D) All of the above classes of stock can be used in a section 351 transaction.

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Definitions:

Exclusive Dealing

A sales strategy where a seller requires a buyer to purchase only its products and not those of competitors.

Vertical Price Fixing

An illegal practice where parties at different levels of the same supply chain (such as manufacturers and retailers) agree to set and maintain prices at a certain level.

Minimum Retail Price

The lowest price at which a retailer can sell a product, often set by the manufacturer to maintain market value.

Independent Buyers

Individuals or entities that make purchasing decisions autonomously, without being influenced by sellers.