bed-and-breakfast deal

/ˌbed ən 'brekfəst ˌdi:l/ noun
formerly, an arrangement where shares were sold one day and bought back the following day, in order to establish a profit or loss for tax declaration
(NOTE: Doing such deals was called ‘bed-and-breakfasting’.)
COMMENT: This is no longer possible, since a period of thirty days has to elapse between the sale and repurchase of the same shares to allow a new price to be established.

Dictionary of banking and finance. 2015.

Look at other dictionaries:

  • bed and breakfast deal — Selling shares one day and buying them back the next, for tax purposes at the end of the financial year. Exchange Handbook Glossary * * *    The sale of a share and its repurchase shortly after the beginning of a new tax year. This allows… …   Financial and business terms

  • Bed And Breakfast Deal — In the United Kingdom, the practice whereby the holder of a security sells it at the end of the day on the last day of the financial year and buys it back the next morning. Arrangements are made between the holder of the security and the broker… …   Investment dictionary

  • bed and breakfast deal — noun a transaction on the London share market where the holders of particular shares wish to sell them late in the day s trading and then buy them back at the start of the next day s trading, in order to establish a profit and loss for tax… …   Australian English dictionary

  • bed-and-breakfast deal — Selling shares one day and buying them back the next, for tax purposes at the end of the financial year. Exchange Handbook Glossary …   Financial and business terms

  • bed and breakfast deal — Fin a transaction in which somebody sells shares at the end of one trading day and repurchases them at the beginning of the next. This is usually done to formally establish the profit or loss accrued to these shares for tax or reporting purposes …   The ultimate business dictionary

  • bed and breakfast — An operation on the London Stock Exchange in which a shareholder sold a holding one evening and made an agreement with the broker to buy the same holding back again when the market opened the next morning. The object was to establish a loss,… …   Accounting dictionary

  • bed and breakfast — An operation on the London Stock Exchange in which a shareholder sold a holding one evening and made an agreement with the broker to buy the same holding back again when the market opened the next morning. The object was to establish a loss,… …   Big dictionary of business and management

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  • Deal, Kent — Coordinates: 51°13′21″N 1°24′02″E / 51.2226°N 1.4006°E / 51.2226; 1.4006 …   Wikipedia

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