bed-and-breakfast deal

From the idea that one might stay in a bed and breakfast, since the trades take place on two consecutive days.

bed-and-breakfast deal (plural bed-and-breakfast deals)

1. (Britain, finance) The practice of selling a position on the last trading day of the year to establish a tax loss, and then repurchasing early on the first session of the new trading year, to restore the position.

   Synonym: bed-and-breakfast transaction

• bed-and-breakfasting