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wash sale

   Also found in: Legal, Financial, Wikipedia 0.01 sec.
wash sale
n.
The illegal buying of stock by a seller's agents to give the impression of an active market.

wash sale
n
(Economics, Accounting & Finance / Stock Exchange) US the illegal stock-exchange practice of buying and selling the same securities at an inflated price through a colluding broker to give the impression that the security has a strong market


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A: The wash sale comes into play if you sell a security and, within 30 days before or after the sale, buy a "substantially identical" security.
A wash sale occurs when shares of a security are sold at a loss and an essentially identical security is purchased within 30 days.
 
 
 
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