The virtual selling of an asset by its owner by doing either of the following: 1) entering into a short sale of that asset or a substantially identical asset. 2) entering into a futures or forward contract as a seller, to deliver that asset or a substantially identical asset. 3) entering one or more positions that eliminate substantially all the losses and opportunity for gain from that asset.
It is worth noting, however, that a sale that only eliminates or reduces the risk of loss or only the opportunity for gain will not be viewed as a constructive sale.
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