Final answer:
The question about the qualifying exchange of shares between Blue Corporation and Red Corporation lacks context for a definitive answer. For the reference scenario with the Darkroom Windowshade Company, investors 1 and 2 need an additional investor to control the company since they do not hold a majority of the shares. Transactions involving stock typically do not involve the company once shares are initially sold.
Step-by-step explanation:
The student is asking if exchanging ten shares of stock in Blue Corporation for ten shares of stock in Red Corporation qualifies for a specific business or tax implication, such as a non-taxable exchange under certain rules. However, the question does not provide enough context to determine whether the exchange qualifies or not. To answer this, more information on the reason behind the exchange and the criteria for qualifying would be needed.
In regard to the provided reference material, we can discuss how the ownership of a company is distributed among its shareholders based on the number of shares they hold. For the Darkroom Windowshade Company, the minimum number of investors required to change the company's top management would be those who collectively hold more than 50% of the outstanding shares. Investors 1 and 2, holding 20,000 and 18,000 shares respectively, together have 38% of the total shares. Even if they vote together, they cannot be certain of always getting their way in company decisions since they do not hold a majority stake. They would need at least one more investor to join them to surpass the 50% threshold.
Additionally, when a transaction involves buying shares of stock in a company like General Motors, the seller is the current owner of those shares, and thus General Motors does not receive any money from the transaction. Similarly, an exchange of shares between Blue Corporation and Red Corporation likely involves the current shareholders rather than the companies themselves.