The transfer of 20 shares of stock in satisfaction of a liability constitutes a sale or other disposition of the stock, resulting in gain or loss realized.

Name: The transfer of 20 shares of stock in satisfaction of a liability constitutes a sale or other disposition of the stock, resulting in gain or loss realized.
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Question

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When transferring shares of stock to satisfy a liability, it is considered a sale or disposition of the stock which can result in a realized gain or loss.

The Transfer of 20 Shares of Stock in Satisfaction of a Liability