### Question
What is the definition of qualified employer securities?


### Answer
The definition of **qualified employer securities** is as follows in *26 U.S.C. § 664*:

> employer securities (as defined in section 409(*l*)) which are issued by a domestic corporation—


(A) which has no outstanding stock which is readily tradable on an established securities market, and


(B) which has only 1 class of stock

#### Citation:
  - *26 U.S.C. § 664*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter J-Estates, Trusts, Beneficiaries, and Decedents > PART I-ESTATES, TRUSTS, AND BENEFICIARIES > Subpart C-Estates and Trusts Which May Accumulate Income or Which Distribute Corpus**

