bailout stock

bailout stock
Preferred stock issued as a nontaxable stock dividend. IRC § 305.

Ballentine's law dictionary. . 1998.

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  • bailout — Various procedures whereby the owners of an entity can obtain its profits with favorable tax consequences. With corporations, for example, the bail out of corporate profits without dividend consequences might be the desired objective. The… …   Black's law dictionary

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  • stock bailout — Preferred stock issued as a nontaxable stock dividend. IRC § 305 …   Ballentine's law dictionary

  • preferred stock bailout — A procedure whereby the issuance, sale, and later redemption or a preferred stock dividend was used by a shareholder to obtain long term capital gains without any loss of voting control over the corporation. In effect, therefore, the shareholder… …   Black's law dictionary

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