tax selling

Tax selling

Selling of securities to realize losses that will offset capital gains and reduce tax liability. See: Wash sale.

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tax selling

The sale of securities to establish gains or losses for income-tax purposes. Significant tax selling often occurs in December, especially following a bear market, as investors seek losses to offset previous gains or other income. An investor may engage in tax selling to establish gains when he or she expects to be paying a higher marginal tax rate the following year. Compare tax-loss selling.