Investor Glossary-daisy chainingInvestor Glossary-daisy chainingInvestor Glossary-daisy chainingInvestor Glossary-daisy chainingInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Daisy Chaining

The HTML to link to this page
 

Daisy chaining is an illegal practice undertaken by brokers and investors to artificially inflate stock prices for personal gain. Daisy chining entails forging false transactions in order to simulate a dynamic, high-interest environment with respect to a specific security. Once such a condition is achieved, the increasing volume and growth of the stock induced by daisy chaining attracts unsuspecting investors. Investors who are unaware of daisy chaining will typically suffer a loss once the hype dissipates. Perpetrators of daisy chaining, on the other hand, will sell their holdings at an ample profit before the stock tailspins. Stocks with low initial volumes are usually selected for daisy chaining. Clusters of brokers and investors involved in daisy chaining are called daisy chains. Daisy chaining is also known as wash selling.



Rate this daisy chaining definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: labor relations, balance sheet, VIX, implied volatility, current ratio, reverse mortgage, risk management, minority interest, option premium, inflation, EBITDA, average price per share, ex-dividend date, annual return, 144a, wholly-owned subsidiary, irrevocable trust, Key Rate Duration, APR, stock split, debt service coverage, deferred tax, 1031 exchange, LIBOR, real GDP, Zero Cost Collar, liquidity ratio, 1035 exchange, FTSE, phantom income, covered put, in escrow, stock market close, per diem, margin rate, open position, quality assurance, dividends payable, deferred revenue, required rate of return, FICO score, retained earnings, diluted share, 401a, class C shares, ex-dividend, command economy, limit order, cancelled check


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use