§ 1858 Corporate Stock Purchase Limits

• •Companies can buy stock in another company to avoid losing money on a debt they already owe.
• •They must sell that stock within six months unless they get special permission to keep it longer.
• •The stock must be sold either publicly or privately.

A bank loans money to a small business, but the business struggles and can't pay back the loan. The bank can buy stock in the business to try and get some of their money back.

The bank has to sell that stock within six months unless the government says they can wait longer. This helps the bank not lose too much money.