dumping

Dumping

1. In international trade, this occurs when one country exports a significant amount of goods to another country at prices much lower than in the domestic market.

2. A slang term for selling a stock with little regard for price.

Notes:

1. Dumping is fought through the use of tariffs and quotas.

See also: Export, Protectionism, Quota, Tariff, WTO

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Dumping

Used in the context of general equities. Offering large amounts of stock with little or no concern for price or market effect.

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dumping

1. The selling of large amounts of a stock or stocks in general at whatever market prices are in effect. For example, investors might dump stocks upon hearing of an outbreak of fighting in some part of the world.

2. The selling of a product in one market at an unusually low price while selling the same product at a significantly higher price in another market. For example, a firm may sell a product in its home market at a price covering all costs and then sell the product in a foreign market at a significantly lower price covering only variable costs.