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Parking a Security
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(1) An illegal arrangement in which an investor buys shares from another party and holds them for a short period before reselling them to the original holder who frequently uses this technique in an attempt to create a tax loss. (2) An illegal technique used in corporate takeovers to assure ownership of a substantial block by a friendly money manager. The money manager is indemnified against loss by the party for whom the securities are parked.
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