Accomodation Trading

An illegal form of trading to increase losses on paper in order to gain a tax writeoff. For example, investor A has shares bought at $100, currently trading at $75. He might sell them to investor B for $50, with an agreement to buy them back later at $50 from investor B. Thus he would be able to writeoff a much larger loss than he was originally able to without incurring an actual loss. It is similar to a “wash sale”.

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