wash sale

English

Noun

wash sale (plural wash sales)

1. (finance) The sale of a security at a loss, and repurchase of the same or substantially identical security shortly before or after; used in tax evasion.

   Synonym: (UK) bed-and-breakfast deal

Related terms

• wash trade

See also

• matched order

Further reading

• John Smullen, Nicholas Hand, editors (2005), “wash sale”, in A Dictionary of Finance and Banking, 3rd edition, Oxford University Press, →ISBN, page 429