If a stock redemption is to be carried out,a cross-purchase type of buy and sell agreement must be involved.

Name: If a stock redemption is to be carried out,a cross-purchase type of buy and sell agreement must be involved.
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Quizplus · Accepted Answer

A stock redemption involves the corporation buying back its own stock from a shareholder. A cross-purchase buy and sell agreement involves shareholders buying and selling each other's stock. Therefore, a cross-purchase agreement is not necessary for a stock redemption.

If a Stock Redemption Is to Be Carried Out,a Cross-Purchase