### Question
What does nonrecently purchased stock mean?


### Answer
**Nonrecently purchased stock** has the following meaning in *26 U.S.C. § 338*:

> any stock in the target corporation which is held by the purchasing corporation on the acquisition date and which is not recently purchased stock

#### Citation:
  - *26 U.S.C. § 338*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART II-CORPORATE LIQUIDATIONS > Subpart B-Effects on Corporation**

