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Circular Trading

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Dictionary Says

Definition of 'Circular Trading'

A fraudulent trading scheme where sell orders are entered by a broker who knows that offsetting buy orders, the same number of shares at the same time and at the same price, either have been or will be entered.
Investopedia Says

Investopedia explains 'Circular Trading'

These trades do not represent a real change in the beneficial ownership of the security.

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