When a corporation repurchases shares of its stock from investors, do individual shareholders generally prefer the repurchase to be treated as a dividend for tax purposes or do they prefer it to be treated as a sale What do corporate shareholders prefer Why ...

Individuals shareholders prefer a share repurchase to be treated as ...

When a corporation repurchases shares of its stock from investors, do individual shareholders generally prefer the repurchase

Question:

When a repurchases shares of its stock from investors, do individual shareholders generally prefer the repurchase to be treated as a for tax purposes or do they prefer it to be treated as a sale? What do corporate shareholders prefer? Why?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...