Etymology

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

Noun

bed-and-breakfast deal (plural bed-and-breakfast deals)Category:English lemmas#BEDANDBREAKFASTDEALCategory:English nouns#BEDANDBREAKFASTDEALCategory:English countable nouns#BEDANDBREAKFASTDEALCategory:English multiword terms#BEDANDBREAKFASTDEALCategory:English entries with incorrect language header#BEDANDBREAKFASTDEALCategory:Pages with entries#BED-AND-BREAKFAST%20DEALCategory:Pages with 1 entry#BED-AND-BREAKFAST%20DEAL

1. (UKCategory:British English#BEDANDBREAKFASTDEAL, financeCategory:en:Finance#BEDANDBREAKFASTDEAL) 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.

   Synonyms: bed-and-breakfast transaction, wash sale

Further reading

• John Smullen, Nicholas Hand, editors (2005), “bed and breakfast”, in A Dictionary of Finance and Banking, 3rd edition, Oxford University Press, →ISBN, page 38