Investopedia

Wash Trading

Dictionary Says

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 Says

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.

Articles Of Interest

  1. The Short And Distort: Stock Manipulation In A Bear Market

    High-quality stock reports needn't be confused with stock manipulators' dramatic claims.
  2. 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 ...
  3. The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  4. Should You Add A Securities License To Your Qualifications?

    Clients love planners who sell securities, but a securities license takes a lot of work. Learn if the stress and study are worth it.
  5. How To Report A Tax Cheat

    If you report a tax evader to the IRS, you could be eligible for a reward.
  6. GAAP And The IFRS Standards Convergence Efforts In 3 Substantial Areas

    Understand the specific steps that have been taken in hopes of converging the GAAP and the IFRS accounting standards, despite the philosophically and culturally based methodological differences ...
  7. How Much Will Your Taxes Rise Based On Your Salary?

    Find out how high your taxes will rise this year.
  8. Department Of Justice Sues Standard & Poor's Over Mortgage Crisis - Is Moody's Next?

    The U.S. Department of Justice sued Standard & Poor's and is seeking more than $5 billion in damages.
  9. New Tax Laws To Watch Out For In 2013

    With a new year comes new laws, and in 2013 the U.S. government has implemented several changes to the tax code.
  10. How Does The Affordable Care Act Affect Your Taxes In 2013?

    Here is a look at how the Affordable Care Act will affect your taxes in 2013 and beyond.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.
  2. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
  3. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
  4. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.
  5. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
  6. Lease To Own

    An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time.
Trading Center