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

Loophole  

Definition 1.

A technicality that allows a person or business to avoid the scope of a law without directly violating the law.
 

Definition 2.

A technicality in some legislation or regulation that makes it possible to avoid certain consequences or circumvent a rule without breaking the law, such as in the use of a tax shelter.
 

Definition 3.

An unintentional characteristic of a law which allows one to circumvent the law's intention without actually breaking that law. Often occurs in tax law.
 
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