Jan. 19, 2023
January 19, 2023 I do not believe the repurchase of a companys preferred stock should be included in this excise tax. Preferred stock has a par value and is normally redeemable at a certain date, similar to other fixed income investments. It also has no voting rights. I agree with the tax imposed on common share buybacks but please review its applicability to preferred stock that has a maturity date or call date. This type of stock is issued to raise capital for the company and bought back to reimburse the investor, with interest. Its not used to prop up the share price like common stock buybacks are.