MEWDS (Multiple Evanescent White Dot Syndrome) is a rare, unilateral, self-limiting inflammatory disease that afflicts young women more than men in a 4:1 ratio. Despite the lack of treatment, the prognosis is excellent. Our patient is the typical age and gender.
To qualify for sale or exchange treatment, a stock redemption generally must result in a substantial reduction in a shareholderâs ownership interest in the corporation.In the absence of this reduction in ownership interest, the redemption proceeds are taxed as dividend income. The former shareholder has no interest, other than that of a creditor, in the corporation for at least 10 years after the redemption (including an interest as an officer, director, or employee).
What is a 'Redemption'. A redemption is the return of an investor's principal in a fixed-income security, such as a preferred stock or bond, or the sale of units in a mutual fund. Fixed-income securities are redeemed at par value on the maturity date, and called bonds are redeemed at a premium price above par.