Multiple Choice
Which of the following stock distributions would be tax-free to the shareholder?
A) A 2-for-1 stock split to all holders of common stock.
B) A stock distribution where the shareholder could choose between cash and stock.
C) A stock distribution to all holders of preferred stock.
D) A 2-for-1 stock split to all holders of common stock and a stock distribution to all holders of preferred stock are tax-free to the shareholder.
Correct Answer:
Verified
Correct Answer:
Verified
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