### Question
How is the "employer securities" defined?


### Answer
The term **employer securities** is defined in *26 U.S.C. § 409* as follows -

> common stock issued by the employer (or by a corporation which is a member of the same controlled group) which is readily tradable on an established securities market

#### 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**

