-256-
(1) shall not apply to any security described
in subparagraph (D) or (E) of subsection
(c)(2) which is held by a dealer in such
securities.
(c) Definitions.--For purposes of this section-–
(1) Dealer in securities defined.--The
term “dealer in securities” means a taxpayer
who--
(A) regularly purchases
securities from or sells securities
to customers in the ordinary course
of a trade or business; or
(B) regularly offers to enter
into, assume, offset, assign or
otherwise terminate positions in
securities with customers in the
ordinary course of a trade or
business.
(2) Security defined.--The term
“security” means any--
(A) share of stock in a
corporation;
(B) partnership or beneficial
ownership interest in a widely held
or publicly traded partnership or
trust;
(C) note, bond, debenture, or
other evidence of indebtedness;
(D) interest rate, currency,
or equity notional principal
contract;
(E) evidence of an interest
in, or a derivative financial
instrument in, any security
described in subparagraph (A), (B),
(C), or (D), or any currency,
including any option, forward
contract, short position, and any
Page: Previous 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 NextLast modified: May 25, 2011