Kiting


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Related to Kiting: Check kiting

Kiting

Used in banking to refer to the practice of depositing and drawing checks at two or more banks and taking advantage of the time it takes for the second bank to collect funds from the first bank.
Also refers to illegally increasing the face value of a check by changing the numbers on the check.
In the context of securities, refers to the manipulation and inflation of stock prices.

Kiting

1. The illegal practice of deliberately misrepresenting the value of a security or transaction in order to extract more funds from a counterparty.

2. The illegal practice of writing a bad check on an account at one bank, depositing it at a second bank, and withdrawing cash. Check holds have made kiting more difficult than it once was.

3. The illegal practice of defacing a check by increasing the amount of money written on it. One may take advantage of bad handwriting, for example, by changing "ten" to "twenty" on the check.
References in periodicals archive ?
Snow kiting is an offshoot of kiteboarding, a water sport that is popular in places such as the Columbia River Gorge.
They purchase items such as specially designed light material, for optimum lift, to make the flying contraptions from professional kiting stores around the world including the US, England and New Zealand.
n Approximately 12 people are killed each year in kiting accidents across the world.
BEACH goers are facing new dangers from the rapidly growing sport of power kiting, according to coastal officials.