### Question
How is the term qualified employer securities defined?


### Answer
The term **qualified employer securities** is defined in *26 U.S.C. § 664* as the following:

> 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**

