Question 38 With respect to the redemption of stock, each of the following tests establishes that the redemption can be treate exchange of stock rather than as a dividend except The redemption is substantially disproportionate with respect to the shareholder's constructive holdings. The redemption is not substantially equivalent to a dividend. The redemption terminates the shareholder's entire interest in the corporation. The redemption is of stock held by a corporate shareholder and is made in partial liquidation of the redeeming corporation