bed and breakfast deal definition

bed and breakfast deal

UK term for the security trading practice in which the holder of a security sells it on the late evening at the end of the financial year and, in a pre-arranged move with a broker, buys it back early next morning to maintain his or her original investment portfolio. Since the objective of this practice is to reduce capital-gains tax, tax authorities normally keep a critical watch on such activities.

bed and breakfast deal is in the Investing and Securities & Futures Trading subjects.

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