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Stock of qualifying domestic C corporations as defined under Section 1202 of the Internal Revenue Code. To qualify, a corporation’s gross assets cannot exceed $50 million (on a tax basis), and at least 80 percent by value of the company’s assets must be used in the active conduct of one or more qualified trades or businesses. Section 1202 does not apply to S corporations, limited liability companies, or limited partnerships. Qualified small business stock held for at least five years qualifies for a reduced long-term capital gains rate on sale and is also the beneficiary of certain preferential rollover treatment after a holding period of six months.