Loophole

Definition:

A technicality in some legislation or regulation that makes it possible to avoid certain consequences or circumvent a rule without breaking the law, such as in the use of a tax shelter.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Regulation U

Federal Reserve Board limit on how much credit a bank can allow a customer for the purchase and carrying of margin securities.

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