Dictionary Home »
Webster's New World Finance and Investment Dictionary » painting the tape
painting the tape
painting the tape definition - finance
Manipulating
the market for a security by reporting fictitious trades on the consolidated
trading tape of an exchange. These trades are not submitted for trade matching
and clearing purposes. Those intending to commit fraud engage in this activity
to increase the apparent trading volume of
a security or to affect the reported closing price. The term is left
over from the day when a paper-based ticker carried stock trade information.
However, the tactic can still be used with electronic trading systems. In that
case, traders can buy or sell a security to create the illusion of high trading
activity and to attract other traders in order to push up the price.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
Comments
Improve this definition.
Browse dictionary definitions near painting the tape
Share on Facebook