nonqualified preferred stock
Defined in 1 place of the United States Code.
The term “nonqualified preferred stock” means preferred stock if—
(i) the holder of such stock has the right to require the issuer or a related person to redeem or purchase the stock,
(ii) the issuer or a related person is required to redeem or purchase such stock,
(iii) the issuer or a related person has the right to redeem or purchase the stock and, as of the issue date, it is more likely than not that such right will be exercised, or
(iv) the dividend rate on such stock varies in whole or in part (directly or indirectly) with reference to interest rates, commodity prices, or other similar indices.
Source
- 1997–present26 U.S.C. § 351Internal Revenue Code · Transfer to corporation controlled by transferor · under this section