wash sale

wash sale
Purchase and sale of a security either simultaneously or within a short period of time, often in order to recognize a tax loss without altering one's position. Bloomberg Financial Dictionary
See: tax selling. Bloomberg Financial Dictionary

* * *

wash sale wash sale sale

* * *

wash sale UK US noun [C] FINANCE, STOCK MARKET
a situation in which an investor sells shares, etc. then buys them back again almost immediately
(also wash trade) the illegal situation when the buyer and seller of shares, etc. is the same person or organization. The buying and selling at the same time gives the impression that there is a lot of trading activity connected with the shares, and may increase their price: »

In a wash trade, no real change of ownership of the securities is involved.

wash-sale rule — Cf. wash-sale rule

Financial and business terms. 2012.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • Wash sale — is a sale of a security (stock, bonds, options) at a loss and repurchasing the same or substantially identical stock soon afterwards. The idea is to make an unrealised loss claimable as a tax deduction, by offsetting against other capital gains… …   Wikipedia

  • wash sale — n [probably from the comparison of such a sale to the act of washing, which does not affect the nature of the thing washed]: a sale and purchase of securities that produces no change of the beneficial owner; specif: a sale of securities within 30 …   Law dictionary

  • Wash sale — (Stock Exchange) A sale made in washing. See {Washing}, n., 3, above. [Webster 1913 Suppl.] …   The Collaborative International Dictionary of English

  • wash sale — ☆ wash sale n. the pretended trading of stock, accomplished by buying shares at one broker and simultaneously selling an equal number of shares at another broker, in order to make trade in that stock appear active: an illegal practice …   English World dictionary

  • wash sale — noun : a prearranged fictitious sale of securities with no real change of ownership that is made to influence the market or to establish a loss for tax purposes * * * 1. a sale of a stock at a loss and repurchase of the same or substantially… …   Useful english dictionary

  • wash sale — The offsetting sale and purchase of the same or similar asset within a short time period. For income tax purposes, losses on a sale of stock may not be recognized if equivalent stock is purchased within thirty days before or thirty days after the …   Black's law dictionary

  • wash-sale rule — ► a rule introduced to stop investors selling and buying back their shares, etc. within a 30 day period so that they cannot claim the sale as a tax loss: »The wash sale rule even applies if you buy new shares before you sell your losing ones.… …   Financial and business terms

  • Wash-Sale Rule — An Internal Revenue Service (IRS) rule prohibiting a taxpayer from claiming a loss on the sale of an investment when the same investment was purchased within 30 days before or after the sale date. Also know as the 30 day wash sale rule . This… …   Investment dictionary

  • Wash Sale — An illegal transaction an investor makes by simultaneously buying and selling a security through two different brokers, thereby creating the illusion of activity. Investors do this to try and recognize a tax loss without actually changing their… …   Investment dictionary

  • wash sale — 1. a sale of a stock at a loss and repurchase of the same or substantially identical stock within 30 days, for which the capital loss is disallowed for tax purposes. 2. the simultaneous purchase and sale of large amounts of a stock or commodity… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”