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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Wash sale  

Definition 1.

Purchase and sale of a security either simultaneously or within a short period of time, often in order to recognize a tax loss without altering one's position. See: Tax selling.
 

Definition 2.

An illegal practice where an investor simultaneously buys and sells a security through two different brokers, thereby creating the illusion of activity.
 
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