Wash Trading
An illegal stock trading practice where an investor simultaneously buys and sells shares in a company through two different brokers.
This increases the activity in the stock and gives the impression that "big news" is about to come out
Painting the Tape
The illegal practice in which traders buy and sell a specific security among themselves, creating the illusion of high trading volume and significant investor interest, which can attract unsuspecting investors who might then buy the stock and enable the traders to profit.
Wednesday, October 27, 2010
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