wash sale


A strategy used by investors to try to claim additional tax benefits. This is done by purchasing a stock via one broker and selling it via another broker within a short time period, and then claiming a loss on the sale. This strategy is not only illegal, but is also no longer effective due to the implementation of the 30-day wash rule.

Mentioned in these terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
wash wash sale rule