Which of the following is not a reason for a stock redemption?
A)desire by remaining shareholders to retain control
B)desire by shareholders to reduce the corporate tax liability
C)Redemption of shares is a good corporate investment.
D)No outside market exists for the stock.

Question

Quizplus · Accepted Answer

Reducing corporate tax liability is not a typical reason for stock redemption. Stock redemptions are usually done for reasons like retaining control, lack of market, or as an investment strategy.

Which of the Following Is Not a Reason for a Stock