Black's Law Dictionary (2nd edition)dictionaries

Wash Sale

In the language of the stock exchange, this is the operation per-formed by a broker who fills an order from one customer to buy a certain stock or commodity by simply transferring to him the stock or commodity placed in his bands (or ordered to be sold) by another customer, in-stead of going upon the exchange and ex-ecutlng both buying and selling orders sep-arately and on the best terms obtainable for the respective customers. See McUlynn v. Seymour, 14 N. Y. SL Rep. 709

Source: Black's Law Dictionary 2nd Ed (1910)