Preferred Stock Bailout

About Preferred Stock Bailout:

before passage of Former IRC (check if this IRC provision is current here) §306, a technique whereby shareholders would withdraw corporate earnings and profits as long-term capital gains by issuing tax-free preferred stock dividends and then selling the stock or having the stock redeemed by the corporation.

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.