Crystallization (crystallising)

An asset is sold but repurchased at a later date, often on the same day. Such a transaction occurs for accounting policy and often also for tax policy considerations (a routine method used to change book values without changing beneficial ownership. An example of this occurs when a company needs to take a capital loss for a particular asset, but one believes it still represents a solid investment. Thus one sells the asset in or to a crystallise capital loss, but buys it back immediately). – See share buyback, balance sheet cosmetics, accounting, creative, factual design, price manipulation, market manipulation, Pairoff, ultimate factoring, wash sales.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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