check kiting

check kiting definition - finance
Writing a check on an account without sufficient funds to cover the amount of the check, then depositing a check from a second account to cover the first check, and leaving the second account short of funds to cover its obligations. The process repeats itself, resulting in little more than a share game. Check kiting is illegal.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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