Stapled Stock

Stapled Stock means:
the combination of a parent company's stock with the stock of a subsidiary company so that neither stock may be transferred without the other. This system is used to avoid controlled foreign corporation status. The Internal Revenue Code provides special ways of handling stapled stock; for example, if the stock of a domestic corporation and that of a foreign corporation are stapled, the foreign corporation is treated as a domestic corporation. Former IRC (check if this IRC provision is current here) §269B.