Wash Trading
 |
Definition of 'Wash Trading'The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading can also make a stock's volume appear to have a lot of activity resulting from the repeated buying and selling done by an individual or firm when, in fact, the shares have never changed owners. |
 |
Investopedia explains 'Wash Trading'Wash trading is illegal, as it is done in order to manipulate the market and prompt other investors into buying the position. A quick turnaround in positions isn't considered wash trading, as long as the transaction creates market risk for the trader and changes their market position, even if only temporarily. |
Related Definitions
Articles Of Interest
-
The Short And Distort: Stock Manipulation In A Bear Market
High-quality stock reports needn't be confused with stock manipulators' dramatic claims. -
Do traders, market makers, specialists or others ever deliberately drive a stock's price down to "shake out" the last sellers?
Many individual investors have had the experience of closing their position in a stock only to see the price rebound moments later. When this happens, it may lead the investor to believe that ... -
Top 4 Most Scandalous Insider Trading Debacles
Here we look at some of the landmark incidents of insider trading. -
Handcuffs And Smoking Guns: The Criminal Elements Of Wall Street
From godfathers to perps, familiarize yourself with the "criminal elements" creeping around Wall Street. -
A Look At Primary And Secondary Markets
Knowing how the primary and secondary markets work is key to understanding how stocks trade. -
Ways To Gauge The Market Open Direction
Accurately predicting the stock market’s opening moves can be a useful tool. If your projection is accurate, you have opportunity to profit. Of course, the first step is to correctly gauge the ... -
Defining Illegal Insider Trading
The better you understand why insider trading can be criminal, the better you'll understand how the market works. -
Digging For Profitable Delistings
Deregistration can provide opportunities for savvy investors. We'll show you how to cash in. -
OTCBB and OTC Markets Group
The majority of larger companies that trade publicly choose to list their stocks on one of the major exchanges - the NYSE or Nasdaq. However, many companies are unable to meet the financial or ... -
Big Pharma Faces 'Pay For Delay' Lawsuits
Unless you follow the pharmaceutical and biotech sectors, it’s likely that you’ve never heard of pay to delay. Instead of planning to lose nearly all revenue once the drug goes off patent, the ...
Free Annual Reports