underlying security
Defined in 1 place of the United States Code.
The term “underlying security” means, with respect to any notional principal contract, the security with respect to which the dividend referred to in paragraph (2)(B) is paid. For purposes of this paragraph, any index or fixed basket of securities shall be treated as a single security.
Source
- 2010–present26 U.S.C. § 871Internal Revenue Code · Tax on nonresident alien individuals · for purposes of this section