daisy chain Hear it!

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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