Foul! We cry it. Accommodation Trading is illegal. Two traders agree to transact in non-fair-market-values, as one sells a stock below market just before Santa takes his spin...and then, a month later, the accommodating trader sells back that stock well below market prices just to be a nice guy, so that the first guy can recognize a tax loss.
You go to jail for this stuff, and licensed traders get asked about it all the time. The accommodation notably is always such that the trade takes a month to hit the return valve, thus not triggering the wash sale rule and nullifying the tax loss. So like...do you really want the IRS coming after you? Yeah, good luck with that. For more gory details, see Painting The Tape.
Related or Semi-related Video
Finance: What is suspended trading?0 Views
Finance allah shmoop what is suspended Trading All right Next
up this snazzy pair of lavender suspended We'll start the
bidding at fifteen dollars Fifteen in the back Can i
get twenty Twenty twenty for the woman in the pink
jacket twenty five Do i hear twenty five Alright we're
switching to decaf No Okay So what really is suspended
trading trading in a security that is stopped suspended as
if in mid air like those chinese acrobats Well the
big question here why was trading suspended Could be one
of many reasons the company didn't provide proper financial documentation
in their quarterly report so the auditors didn't sign off
Ouch Yeah Not normally Bullish for a stock or company
is found guilty of fraud Or the ceo was caught
on tape holding squirrel fighting matches in his basement All
right Well the nineteen thirty four act gave the sec
the right to suspend trading for ten days now pretty
much any time they reasonably thought it necessary to protect
irving q investor And when this happens it's oh so
not good for the company in question The suspension itself
stops trading in the stock usually causing at least gentle
Panic among the myriad nervous nellie penguins out there just
dying to sell their stock But they can't because trading
is suspended and they get incrementally more nervous is the
minutes go by such that it well it makes them
do this So how does the pain end Euthanasia No
generally a standard form suspension last for ten days And
then it's done the thought being that if a company
takes longer than ten days to get its compliance act
in order well then seriously worse things were involved in
other agencies will probably then come to play Think fbi
the default tend a lapse may happen and then the
security is unsuspected presumably with company going on and on
and on endlessly about what happened and why and how
and how it will never happen again knowing that a
bunch of ambulance chasing lawyers from new york city will
sue them for not having filed properly the form from
the division in somalia and now the company according to
the lawyer zoe's shareholders eighteen billion dollars hopefully for the
company there payable in somalia in dollars or shareholders are
going to work out some kind of suspender trade Yeah 00:02:18.39 --> [endTime] About that
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