   
|
|
Daisy Chaining
|
| FYI - For 2011, Dow up, Dogs of the Dow up more (double digits) |
| |
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...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: option premium, deferred revenue, annual return, per diem, inflation, 144a, Zero Cost Collar, current ratio, 1035 exchange, labor relations, retained earnings, 401a, liquidity ratio, irrevocable trust, Key Rate Duration, risk management, debt service coverage, balance sheet, deferred tax, quality assurance, dividends payable, class C shares, ex-dividend date, stock split, ex-dividend, 1031 exchange, command economy, reverse mortgage, stock market close, EBITDA, margin rate, LIBOR, required rate of return, FICO score, VIX, limit order, APR, minority interest, open position, implied volatility, average price per share, phantom income, FTSE, real GDP, diluted share, wholly-owned subsidiary, in escrow, cancelled check, covered put
|
|
| |