accommodation trading


A tax-avoidance technique whereby two traders agree to make a non-competitive stock trade that allows one trader to claim an investment loss when filing taxes. For example, Tim agrees to purchase shares that Joe bought for $50 at a price of $40; thereby, Joe can claim a loss of $10 per share. Once taxes are filed, Tim sells the shares back to Joe at a price of $40, creating a "wash sale".
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accommodation party accommodative monetary policy