Stock Trading and Other Things

Wash Sale. Are big trading companies also subject .to this rule?

I know the little guy can't sell a stock at a loss and repurchase it the next day.
Are big WallStreet trading firms also subject to the Wash Sale??

Public Comments

1. Wash sale rules apply to everyone.

However, many institutional investors (pensions, endowments) are not taxable entities, so it is pretty much irrelevant to them. They would not sell to recognize a loss in the first place.

Mutual funds pass on realized capital gains to investors. They do have to keep track of wash sales.