Question: What is a straw buyer?

Answer: A straw buyer is simply a person who is making a purchase for someone else. A straw buyer is normally used when the true buyer, the real buyer, cannot complete the transaction for some reason. A couple of examples would be that if someone would potentially be accused of insider trading if they were to buy a stock, or if a felon were to use someone else to buy a gun that they would like to purchase but cannot legally do so.

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