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Qualified Small Business Stock (QSBS)

Definition

A U.S. tax provision allowing investors in qualifying small businesses to exclude a portion of capital gains from federal taxation upon the sale of stock held for more than five years. QSBS incentives encourage early-stage venture investment and can significantly enhance after-tax returns for founders and investors in growth companies.

Related Terms

Quality-Adjusted Output Quantitative Easing (QE) and Asset Valuations Absorption Rate Accretion/Dilution Analysis Adjusted EBITDA

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