Complete the sentences below to answer the question "Why does the Code limit sale or exchange treatment on stock redemptions to qualifying stock redemptions?" In a sale of stock to a third party, the shareholder's ownership interest in the corporation is , and such dispositions result in a treatment. The amount realized is by the shareholder's stock basis and a capital gain (or loss) results. In a stock redemption where shares are sold back to the issuing corporation, the transaction can have the effect of a rather than a . The key distinction between a sale of stock to an unrelated third party and some stock redemptions is the effect of the transaction on the