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Finance Dictionary and Glossary of Investment Terms
tax swap
Definition 1.
The sale of a security that has declined in price since its purchase and the simultaneous purchase of a similar but not identical security, in order to realize a loss for tax purposes while maintaining a position.
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Definition 2.
Swapping two similar bonds to receive a tax benefit.
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Definition 3.
A method of crystallizing capital losses by selling losing positions and purchasing companies within similar industries that have similar fundamentals.
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