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.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: email@example.com