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So he is purchasing the stock at 10.00 per share and the company is buying it back at 20.00 per share, is the 20.00 the par value stated on the stock?
So if you are loaning me 10,000 dollars for my start up of a private corporation and I the company issues you 10,000 shares of redeemable preferred stock the par value would be 10 per share. If I had to pay you back 20.00 per share in one year in the contract we would draw up for the purchase of the stock (loan to the company) I would list purchase price (par value) as 10.00 dollars and the one year redemption or buyback as 20.00 per share? since Preferred stock usually carries a dividend and not so in this case would I spell that out here also?
Thank you so much. I will be asking you several questions over the next few weeks.
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