bond-washing

/'bɒnd ˌwɒʃɪŋ/ noun
selling securities cum dividend and buying them back later ex dividend, or selling US Treasury bonds with the interest coupon, and buying them back ex-coupon, so as to reduce tax

Dictionary of banking and finance. 2015.

Look at other dictionaries:

  • bond-washing — bondˈ washing noun An illegal series of deals in bonds designed to avoid payment of tax • • • Main Entry: ↑bond …   Useful english dictionary

  • Bond Washing — The practice of selling a bond just before it pays a coupon payment and then buying it back once the coupon has been paid. Bond washing results in a tax free capital gains because after the coupon has been paid, the bond will sell for less. Bond… …   Investment dictionary

  • bond washing — The process of selling a bond cum dividend and then repurchasing the bond ex dividend, designed to convert the coupon element of the bond s price into a capital gain, rather than receiving the coupon as income. This does not however, affect the… …   Financial and business terms

  • bond-washing — Fin the practice of selling a bond before its dividend is due and buying it back later in order to avoid paying tax …   The ultimate business dictionary

  • bond washing — See dividend stripping …   Big dictionary of business and management

  • bond — n. & v. n. 1 a a thing that ties another down or together. b (usu. in pl.) a thing restraining bodily freedom (broke his bonds). 2 (often in pl.) a a uniting force (sisterly bond). b a restraint; a responsibility (bonds of duty). 3 a binding… …   Useful english dictionary

  • washing — / wɒʃɪŋ/ noun US the practice of selling and buying back the same security, so as to reduce tax liability, or to increase trading volume. ⇒ bond washing …   Dictionary of banking and finance

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  • dividend stripping — bond washing The practice of buying gilt edged security after they have gone ex dividend (see ex ) and selling them cum dividend just before the next dividend is due. This procedure enables the investor to avoid receiving dividends, which in the… …   Big dictionary of business and management

  • Lloyd's of London — Not to be confused with Lloyds TSB or Lloyd s Register. Lloyd s redirects here. For other uses, see Lloyd This article is about the insurance market. For the film, see Lloyd s of London (film). Lloyd s Type Ins …   Wikipedia

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