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This question was closed without grading. Reason: Answer found elsewhere
Dec 23, 2009 15:05
14 yrs ago
French term

achetés-vendus

French to English Bus/Financial Investment / Securities Tax mitigation
"achetés-vendus" here being essentially the sale and buy back of an investment to fix capital losses at that date.
But what is this called in english.
Is there an alternative to "Wash Sales"
Proposed translations (English)
3 +1 buy/sell backs
4 guaranteed principal trades
3 stock buyback or share repurchase
Votes to reclassify question as PRO/non-PRO:

Non-PRO (1): Chris Hall

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Discussion

Jack Dunwell (asker) Dec 24, 2009:
Dear Phil. What more could you possibly have? Did you want to go over ground that I had already sorted out? I needed help in a particular area. And I've had it. Thank you. Yes these transactions are Bed and Breakfast or Washing deals, of course. Their intent was to take Capital Gains and losses into the right tax year on the back of a sell and buy-back. But whether these were successful or not does not come into the ambit of the translation. I was looking for a less informal way to describe it. And, again thank you. Of course this work was sent in some time ago.
philgoddard Dec 24, 2009:
We could all have saved ourselves a lot of time if you'd provided the context for this (which you still haven't).
joehlindsay Dec 24, 2009:
Ahh! So it is essentially just sales and repurchases literally, and not 'repos', 'wash sales' or 'bed and breakfasting' as those terms are used in capital market transactions.

You might consider 'repurchase' instead of 'buyback'. Although it literally is 'buying back', I think some finance people might think it is a company's 'buy-back' of its shares. No big deal.
Jack Dunwell (asker) Dec 24, 2009:
Joehlindsay thank you This is a complaint by a 93 year old that his bank has landed him with capital gains for 2009. They result from sales and buy backs of his investments. Whether they are acceptable for tax purposes depends, I think, on the time between sale and buy back, but that is not the issue raised. I have used "Sale and Buy-back" finally.
joehlindsay Dec 24, 2009:
context? I think to know if this is a 'wash sale' more context really is needed. My "Dictionnaire Pratique des Mondes de la Finance et de la Bourse" has:

"acheté-vendu ou vendu-acheté (AV or VA)

m. a simultaneous buying or selling operation for the same volume of securities with the same maturity, resulting in a single commission.

I don't think this is a 'wash sale' and certainly not a stock buyback or share repurchase.

I'm not sure an accepted English term for this even exists, which the Dictionnaire des MFB seems to confirm. A "wash sale/trade or bed and breakfasting" is an "opération fictive" in French.

I think there is something missing. How did you decide that it is the transaction you describe?
philgoddard Dec 23, 2009:
It's not colloquial - it's the recognised term for this practice. But I don't agree that we have full context - we have two words!
Jack Dunwell (asker) Dec 23, 2009:
Bed and Breakfasting Yes I remember that now! But Is there something less colloquial? Phil? We have full context. In fact the absolute question might deal with a 30 day wait.
What I think is important that you pick up is the Sell first and buy back later. I think you're right, it's better stated as "vendus/achetés" Thank you.
philgoddard Dec 23, 2009:
Could we have some context please? A full sentence would be a start.
The UK English term for selling stocks one day to achiev a tax loss and buying them again the next day is "bed and breakfasting". But then that would presumably be "vendus-achetés".

Proposed translations

5 mins

stock buyback or share repurchase

A stock buyback, also known as a "share repurchase", is a company's buying back its shares from the marketplace. You can think of a buyback as a company investing in itself, or using its cash to buy its own shares. The idea is simple: because a company can’t act as its own shareholder, repurchased shares are absorbed by the company, and the number of outstanding shares on the market is reduced. When this happens, the relative ownership stake of each investor increases because there are fewer shares, or claims, on the earnings of the company.

More information on the reference link.
Reference:

http://www.investopedia.com/articles/02/041702.asp

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+1
7 mins

buy/sell backs

This would probably be the equivalent I think.
Reference:

http://en.wikipedia.org/wiki/Repurchase_agreement

Peer comment(s):
agree Chris Hall : http://dictionary.reverso.net/french-english/achète
21 mins
neutral joehlindsay : I think a "repurchase agreement" or "repo" is a "mise en pension" or "pension sur titres"..
20 hrs
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4 days

guaranteed principal trades

IF (and only if) you want to know what it's actually called in the Euronext harmonised rule book. This particular type of 'opération d'acheté-vendu' (in securities, executed by an intermediary for one client) comes under this heading ('opérations de contrepartie garanties' in French) in paragraph 4402. Note that it is *defined* as a trade by a market member: buy and sell orders for the same amount of the same security, entered into the order book at the same time.

These trades are permissible if they do not constitute a 'transactiion fictive', and the intermediary could be liable for facilitating market manipulation if they do. But establishing a tax gain or loss is a perfectly good reason, as far as the AMF is concerned: "Il est précisé à cet égard, qu'une opération initiée par un client aux fins de générer, pour un motif fiscal, une plus ou moins-value tout en conservant son actif, ne requiert pas de diligence particulière à ce titre de la part du prestataire."

From the client's standpoint, these would be "wash sales" in US tax terminology. Not illegal: they just don't count for tax purposes. Because they do seem to count in France, that's a good reason to avoid the term. Similarly, the UK "bed and breakfasting rules" are designed to prevent tax-free gains and losses -- and that is not what the client is complaining about, is it? If he did not initiate the trades in question, he would appear to have a valid beef.


Reference:

http://www.amf-france.org/documents/general/6244_1.pdf

Note from asker:
Hello RK. I bow of course to your expertise in this area and wish you a very Happy New Year! I've been trying to find this phrase in use...could you offer one ?
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