Investor Glossary-kitingInvestor Glossary-kitingInvestor Glossary-kitingInvestor Glossary-kitingInsightful 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

Kiting

The HTML to link to this page
 

Kiting, or "floating," is a banking term that refers the illegal practice of drawing and depositing two checks at two separate banks in hopes of taking advantage of the time it takes for the checks to clear. This means that there is a time period in kiting where the bank that cashed the check doesn't have the money yet, and the bank that issued the check isn't yet aware that the check was issued. This window is where kiting comes in. With kiting, the process of writing two checks is repeated as long as both banks believe there is money behind the checks. Kiting also refers to changing the numbers on a check to increase the face value. Kiting may also refer to the manipulation and inflation of stock prices. Kiting in any form is highly illegal.



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


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