### Question
How does Effects on Corporation define nonrecently purchased stock?


### Answer
Under *26 U.S.C. § 338*, **nonrecently purchased stock** is defined as:

> any stock in the target corporation which is held by the purchasing corporation on the acquisition date and which is not recently purchased stock

#### Citation:
  - *26 U.S.C. § 338*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART II-CORPORATE LIQUIDATIONS > Subpart B-Effects on Corporation**

