backdating (redirected from Options backdating)

Backdating

Dating any document by a date earlier than the one on which the document was originally drawn up.

Notes:

This is obviously fraudulent. The IRS doesn't like this at all. In fact they tend to do a little more than frown upon it when they discover backdating.

See also: IRS

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Backdating

In the context of mutual funds, a feature allowing fundholders to use an earlier date on a letter of intent to invest in a mutual fund in exchange for a reduced sales charge, e.g. Giving retroactive value to purchases from the earlier date.

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backdating

The practice of allowing a mutual fund shareholder to use previous purchases of the fund's shares so as to qualify for reduced commission charges on subsequent purchases. Backdating is used when a fund offers declining proportional sales charges on larger purchases.