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.

Related Terms

30-day wash rule -  More

Mentioned in these terms

Related Personal Finance Articles

Loading...

wash sale in the news

Loading...

wash sale is ...

... part of the Accounting, Stocks and Trading subjects.

Search volume for wash sale

Browse 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