Home
Terms - Investing
Vote And Share
Calculators
Wise Igor Ansoff
Other Articles
WEB SITE CHAT
Beginner Investors
Value Investing
small cap articles
Mid Cap Stocks

accommodation trading



There is something called accommodation trading which happens when a trade takes place with the intention of not making a profit but to help one or both traders with a trade that was predefined by the two parties. For example one trader might sell another to avoid taxes by buying back the stock later and declaring a loss i.e. one trader sells the stock to another for less than the current market price.

Comments:

These types of trades are certainly present in our lives today and there isn’t a lot we can do about it. However with strict tax laws and tight security by the SEC it’s becoming harder for such trades like these too happen. Investing cheating the system by methods like this are is usually insider trading or trying to evade taxes for personal gain. Engaging in illegal trading is wrong and usually results in jail time if the investor is caught thereby making it a risky proposition. Accommodation trading does NOT mean having help with your trading from experts. Many people get confused and think trading with accommodation is simply help from fund managers or exerts which is NOT the case.

absolute priority
b shares