### Question
What does stripped preferred stock mean?


### Answer
**Stripped preferred stock** has the following meaning in *26 U.S.C. § 305*:

> any stock described in subparagraph (B) if there has been a separation in ownership between such stock and any dividend on such stock which has not become payable

#### Citation:
  - *26 U.S.C. § 305*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART I-DISTRIBUTIONS BY CORPORATIONS > Subpart A-Effects on Recipients**

