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Sell Against the Box |
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The act of selling short securities that you already own. This results
in a neutral position where your gains in a stock equal the losses.
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For
example, if you own 200 shares of XYZ and tell your broker to sell
short 200 shares of XYZ, you have shorted against the box. The sole
rationale for shorting-against-the-box is to delay a taxable event,
such as delaying capital gains until the next year. Unfortunately,
tax agencies have realized this issue and have tried to prevent it,
but there are still loopholes.
Also known as "shorting against the box". |
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