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Webster's New World Finance and Investment Dictionary » daisy chain
daisy chain
daisy chain definition - finance
A
series of linked trades that are done in order to manipulate the market and
increase trading volume to make it appear that there is an active market for a
security. The activity makes prices rise and allows the market manipulators to
sell their holdings at a higher price. However, when unsuspecting investors
attempt to place sell orders, they receive sharply lower prices than they
expect because there is no one on the other side willing to purchase the
shares.
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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