### Question
How does Income Taxes define employer securities?


### Answer
Under *26 U.S.C. § 409*, **employer securities** is defined as:

> common stock issued by the employer (or by a corporation which is a member of the same controlled group) having a combination of voting power and dividend rights equal to or in excess of—


(A) that class of common stock of the employer (or of any other such corporation) having the greatest voting power, and


(B) that class of common stock of the employer (or of any other such corporation) having the greatest dividend rights

#### Citation:
  - *26 U.S.C. § 409*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart A-General Rule**

