bed-and-breakfast deal

English dictionary entry

Meanings

noun
  1. The practice of selling a position on the last trading day of the year to establish a tax loss, and then repurchasing early on the first session of the new trading year, to restore the position.

Word forms

bed-and-breakfast deal bed-and-breakfast deals

Etymology

From the idea that one might stay in a bed and breakfast, since the trades take place on two consecutive days.

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