Clawback

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DEFINITION of 'Clawback'

1. Money or benefits that are distributed and then taken back as a result of special circumstances.

2. A retraction of stock prices or of the market in general.

BREAKING DOWN 'Clawback'

1. Purchasing certain investments provides taxable benefits contingent upon holding periods. When you sell these investments before they have reached maturity, the benefits must be returned.

2. In layman's terms, a fall in a stock's price right after an increase is called a clawback of the price.

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