### Question
How does the law define publicly traded partnership?


### Answer
Under *26 U.S.C. § 469*, **publicly traded partnership** is defined as:

> any partnership if—



(A) interests in such partnership are traded on an established securities market, or



(B) interests in such partnership are readily tradable on a secondary market (or the substantial equivalent thereof)

#### Citation:
  - *26 U.S.C. § 469*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart C-Taxable Year for Which Deductions Taken**

