wash sale

Definition
Stock approved by the Federal Reserve and an investor's broker as being suitable for providing collateral for margin debt. Depositing marginable stocks (or any other marginable securities) in a margin account is an effective way for an investor to reduce financing charges. However, the criteria to ensure that securities are suitable as collateral for margin debt can be quite strict. The Federal Reserve has a minimum set of standards for marginable stock, but a broker can choose to set stricter standards.




wash sale is ...
... part of the
Accounting, Stocks and Trading subjects.


Related Terms

30-day wash rule -  More


wash sale appears in these other terms

wash sale rule
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