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Can one corporation buy stock in another?

Discussion in 'Running an Appraisal Business' started by Doug in NC, Dec 10, 2008.

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  1. Doug in NC

    Doug in NC Senior Member

    9
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Can one corporation buy stock in another? Just wondering. If business picks up in January, I may have a little extra to invest for the future.
     
  2. William Rightsell

    William Rightsell Member

    0
    Oct 22, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    I think so...

    Look at UBS or Merrill Lynch etc...they are corporations and have thier own investment accounts. Inurance cos buy stocks all the time for the dividend cash flow....

    I dont think it would be any different for a one man S corp to have a corp investment account.

    todd
     
  3. Mark K

    Mark K Senior Member

    65
    Jan 27, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Indiana
    That's how companies get bought-out.

    I used to own stock in Upjohn Company until Pharmacia bought them out. Then Pfizer bought Pharmacia and now I own stock in Pfizer. That's the way the world works.

    Be careful buying the corporation; when you buy the stock you buy the assets but most of the time you also get the liabilities. Including the liability for past problems and errors.
     
  4. Howard Klahr

    Howard Klahr Senior Member

    136
    Oct 4, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    S corporation Retrictions

    • can have no more than 100 shareholders
    • None of the shareholders can be C corporations, LLCs, non-U.S. citizens or non-resident aliens
    • Can not own other business entities

    However, other forms of corporate entities may and do own other corporations
     
  5. William Rightsell

    William Rightsell Member

    0
    Oct 22, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    My bold...does this mean a one man S corp cannot purchase 100 shares of IBM?? Or does it mean they can't purchase the entire company?

    Just curious...

    todd
     
  6. AJL118

    AJL118 Member

    10
    Jul 29, 2005
    Professional Status:
    General Public
    State:
    Florida
    1234567890
     
    Last edited: Dec 12, 2008
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