Readily Tradable Instrument [Internal Revenue] Law and Legal Definition

Pursuant to 26 CFR 31.3406(h)-1 (d) [Title 26 Internal Revenue; Chapter I Internal Revenue Service, Department of the Treasury; Subchapter C Employment Taxes and Collection of Income Tax at Source; Part 31 Employment Taxes and Collection of Income Tax at Source; Subpart E Collection of Income Tax at Source], the term Readily Tradable Instrument means --

“(1) Any instrument that is part of an issue any portion of which is traded on an established securities market (within the meaning of section 453(f)(5) [26 USCS § 453(f)(5)]); or

(2) Any instrument that is regularly quoted by brokers or dealers making a market.”