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.


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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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