### Question
How does the law define intragroup stock?


### Answer
Under *26 U.S.C. § 304*, **intragroup stock** is defined as:

> any stock which—


(I) is in a corporation which is a member of an affiliated group, and


(II) is held by another member of such group

#### Citation:
  - *26 U.S.C. § 304*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART I-DISTRIBUTIONS BY CORPORATIONS > Subpart A-Effects on Recipients**

