QES

qualifying employer security (QES)

USA

A security issued by an employer of employees covered by an employee benefit plan, or by the employer's affiliate, that is any of the following:

• stock.

• marketable obligation.

• interest in certain publicly traded partnerships.

If a plan is not an eligible individual account plan, the stock or interest in a publicly traded partnership held by the plan must meet both of the following tests immediately after the plan acquires them to be considered QES:

• The plan cannot hold more than 25% of the aggregate amount of the same class of stock issued and outstanding.

• Persons independent of the issuer must hold at least 50% of the aggregate amount of the same class of stock issued and outstanding.

Special rules apply to a plan's purchase, sale or holding of a QES.