In general, would an individual shareholder prefer for a stock redemption to qualify for one of the statutory tests under Sec. 302(b)? Explain why or why not.

• Sec. 302(b) statutory tests:

  • (1): Redemptions not equivalent to dividends

  • (2): Substantially disproportionate redemption of stock

  • (3): Termination of shareholders interest

  • (4): Redemption from non-corporate shareholder in partial liquidation