locked in investment & finance definition
- A
situation in which an investor has made a profit on an investment but is
reluctant to sell it because the gain will be subject to ordinary income taxes
rather than capital gains taxes, which are assessed after a minimum holding
period and are lower than regular tax rates.
- A situation
in which a hedged position can’t be lifted without offsetting both sides of the
hedge.
See locked in in Wall Street Words
To have a large paper, or unrealized, profit in a security position, with the result being that sale of the security would engender substantial taxation.
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