### Question
How does the law define 50-percent or greater interest?


### Answer
Under *26 U.S.C. § 355*, **50-percent or greater interest** is defined as:

> stock possessing at least 50 percent of the total combined voting power of all classes of stock entitled to vote or at least 50 percent of the total value of shares of all classes of stock

#### Citation:
  - *26 U.S.C. § 355*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART III-CORPORATE ORGANIZATIONS AND REORGANIZATIONS > Subpart B-Effects on Shareholders and Security Holders**

