If an investor swaps identical issues to establish a loss,the loss is disallowed and the transaction is known as a

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This transaction is known as a wash sale, where an investor sells securities at a loss and repurchases them within a short period of time to establish a tax loss without significantly changing their position in the stock. However, the IRS disallows the loss in such cases.

If an Investor Swaps Identical Issues to Establish a Loss,the