DEFINITION of 'Parking'

A form of kiting shares that a brokerage commits by moving long positions in unrelated accounts to cover short positions that are improperly settled according to SEC regulations.


When parking shares, brokerage firms are attempting to cover undeclared short positions left over from transactions whose stock was not delivered by the settlement date. Rather than performing a buy-in transaction, these firms collude with one another and, by delaying the settlement process, inflate the number of shares available for trade in the secondary market.

  1. Short Covering

    Buying back borrowed securities in order to close an open short ...
  2. Cover

    The act of completing an offsetting transaction so as to eliminate ...
  3. Pairing Off

    An illegal practice of a brokerage firm offsetting short and ...
  4. Secondary Market

    A market where investors purchase securities or assets from other ...
  5. Clearing

    The procedure by which an organization acts as an intermediary ...
  6. Kiting

    1. The act of misrepresenting the value of a financial instrument ...
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