### Question
Can you define what qualified stock means?


### Answer
**Qualified stock** is defined as the following in *26 U.S.C. § 1298*:

> any stock in a C corporation which is a domestic corporation and which is not a regulated investment company or real estate investment trust

#### Citation:
  - *26 U.S.C. § 1298*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART VI-TREATMENT OF CERTAIN PASSIVE FOREIGN INVESTMENT COMPANIES > Subpart D-General Provisions**

