Words / D / Law

dividend stripping

noun

C2CEFR level
85/100Rarity: very rare
TechnicalRegister

The buying of shares cum-dividend and selling them ex-dividend to convert taxable income into a more lightly taxed gain or loss.

The arrangement was plain dividend stripping dressed up as an investment strategy.

Similar: bond washing

Topic: Tax law in Legal English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More law words: Tax law