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The nonqualified preferred stock (NQPS) rules of Sec. 351(g), originally enacted in 1997, generally treat certain preferred stock as "boot" in certain exchanges under Secs. 351, 354, 355, 356 and 1036. According to Sec. 351(g)(3)(A), the term "preferred stock" means stock limited and preferred as to dividends and that does not participate in corporate growth to any significant extent.
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