wash sale

noun

Legal Definition of wash sale 

: a sale and purchase of securities that produces no change of the beneficial owner specifically : a sale of securities within 30 days before or after the purchase of substantially identical securities

Note: Any loss from such a sale is not deductible for most taxpayers under the Internal Revenue Code.

History and Etymology for wash sale

probably from the comparison of such a sale to the act of washing, which does not affect the nature of the thing washed

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