### Question
How is the "readily tradable" defined?


### Answer
The term **readily tradable** is defined in *26 U.S.C. § 453* as follows -

> a bond or other evidence of indebtedness which is issued—


(A) with interest coupons attached or in registered form (other than one in registered form which the taxpayer establishes will not be readily tradable in an established securities market), or


(B) in any other form designed to render such bond or other evidence of indebtedness readily tradable in an established securities market

#### Citation:
  - *26 U.S.C. § 453*
  - 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 B-Taxable Year for Which Items of Gross Income Included**

