Tag: rule does apply

What Are Wash Sales In Stocks

What Are Wash Sales In Stocks? A wash sale is a sale of a security (usually a stock or bond) followed immediately by the purchase of an identical security. The goal of a wash sale is to create a tax loss, which can be used to offset taxable gains. The term “wash sale” comes from […]

Limiting Liability When Short Selling Using Etf

When you short sell a security, you hope the price falls so you can buy it back at a lower price and then return it to the lender. If the price falls too much, you can lose money. One way to limit your risk is to use a security known as an exchange-traded fund, or […]