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Definition of 'Accommodation Trading'
A type of trading in which a trader accommodates another by entering into a non-competitive purchase or sale order. An accommodation trade is often executed when two traders are participating in illegal trading.
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Investopedia explains 'Accommodation Trading'
An accommodation trade could occur when two traders agree to exchange a stock for a price well below the market value, allowing the seller to realize a large capital loss on the shares. For example, suppose that Bill purchased stock in Company XYZ at $55 per share. With tax season coming soon, Bill decides to sell the stock to Joe for $45, even though the shares are currently trading at $60. Bill realizes a capital loss of $10 per share, which he can use to lower the taxes paid on any capital gains on other investments. After the taxes are filed, Joe sells the stock back to Bill at $45. This trade, also known as a wash sale, allows Bill to cheat the tax system, while never actually losing any value on the stock.
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Search results for 'Accommodation Trading'
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http://stocks.investopedia.com/stock-analysis/2009/6-Stocks-Outperforming-The-Entire-SP-500-WYNGNWODPFITBGCIIP1221.aspx
... operates in the hospitality business, providing hotel accommodation and "vacation ...
Aryeh Katz. Filed Under: 401K,Accounting,Active Trading,Alternative Investments ...
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http://www.investopedia.com/professionals/FAQs/CFA/280504.asp
... Active Trading; Fundamentals; Charts & Patterns; Technical Indicators; Trading
Strategies; ... intervals, you must complete a "Disability Accommodation Form" and submit ...
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http://stocks.investopedia.com/stock-analysis/2010/What-To-Expect-From-The-Oil-Sands-In-2010-IMO-SU-XOM-OIS0111.aspx
... The company received a contract to provide accommodation for the Kearl oil sands
project, and it will expand capacity at its Wapasu Creek ... Trading Center. New! ...
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http://stocks.investopedia.com/stock-analysis/2011/2011-In-Review---Conglomerates-TYC-BRK-A-HIT-PHG1222.aspx
... year. That is not to say that there wasn't some acknowledgment or accommodation
to quality. Berkshire ... Trading Center. New! The Financial ...
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http://www.investopedia.com/articles/stocks/08/small-cap.asp
... (NYSE:TBI) in 2007. Back in late 1997, the temporary employment provider was trading
in the mid single digits. ... Read More ». Trading Center. Partner Links. ...
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http://www.investopedia.com/articles/01/040401.asp
... inbox. Related Articles. Make Money Trading Earnings Announcements. Here ... bill.
Read More »; 3 Questions To Find Your Trading Plan. Ask ...
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http://www.investopedia.com/articles/financial-theory/08/global-warming-risks.asp
... Companies can often hedge against major price changes or other business risks by
trading in derivatives, but even their pricing is determined by simple ...
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http://www.investopedia.com/articles/stocks/05/troubledstock.asp
... investors. On Dec 31, 2001, HLT closed at only $10.92. Three years later,
on Dec 31, 2004, HLT was trading at $22.74. Then again ...
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http://www.investopedia.com/articles/pf/08/business-owner-sales.asp
... Cultural fit involves top-to-bottom chemistry, with reasonable, mutual expectations
of accommodation in operations and "soft interactions." While sellers are ...
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http://www.investopedia.com/articles/mutualfund/08/leisure-funds.asp
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