Series 79: Stock Vs. Cash

Taken from our Series 79 Top-off Online Guide

Stock vs. Cash

The type of consideration the buyer pays has a significant impact on tax issues. As noted, for a transaction to be considered tax-free, the consideration must consist largely or entirely of stock. Cash payments are taxable. Even in a tax-free reorganization, the portion of consideration that consists of cash will be taxable. The tax advisor will be able to provide further guidance based on the seller’s specific circumstances.

Since you're reading about Series 79: Stock Vs. Cash, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 79
Please Enable Javascript
to view this content!