Note also to qualify in buying the Common share you must be a credited investor credited by a financial trading institution. Only investors worth over a certain amount in assets qualify for the common share purchase.
Example is if the brokerage house purchases a million dollars in shares on the open market above the stated par value then there is a payable tax of 20% that can be sold to the general public. The brokerage house could buy back the tax debt for 1% of the capital cost of the common shares. This greatly reduces the cost of purchase of the common share for the broker.
If the the common shares should go up in value then they must pay that increase in tax’s to the debt equity holder. If the common share price should drop then nothing is paid out or is charged out “ LTD limited tax deductible entity “ Its only limited to the amount of tax debt purchased.