### Question
What does purchase mean?


### Answer
**Purchase** has the following meaning in *26 U.S.C. § 338*:

> any acquisition of stock, but only if—



(i) the basis of the stock in the hands of the purchasing corporation is not determined (I) in whole or in part by reference to the adjusted basis of such stock in the hands of the person from whom acquired, or (II) under section 1014(a) (relating to property acquired from a decedent),



(ii) the stock is not acquired in an exchange to which section 351, 354, 355, or 356 applies and is not acquired in any other transaction described in regulations in which the transferor does not recognize the entire amount of the gain or loss realized on the transaction, and



(iii) the stock is not acquired from a person the ownership of whose stock would, under section 318(a) (other than paragaraph [1](#338_1_target) (4) thereof), be attributed to the person acquiring such 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**

