parking (redirected from Parking fee)

Parking

A form of kiting shares that a brokerage commits by moving long positions in unrelated accounts to cover short positions that are improperly settled according to SEC regulations.

Notes:

When parking shares, brokerage firms are attempting to cover undeclared short positions left over from transactions whose stock was not delivered by the settlement date. Rather than performing a buy-in transaction, these firms collude with one another and, by delaying the settlement process, inflate the number of shares available for trade in the secondary market.

See also: Clearing, Cover, Kiting, Pairing Off, Secondary Market, Settlement Date, Short Covering, Short Interest

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Parking

Putting money into safe investments such as money market investments while deciding where to invest the money.

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parking

1. Placing idle funds in a safe, short-term investment while awaiting the availability of other investment opportunities. Many investors end up parking proceeds from a security sale in a money market account while searching for other securities to purchase.

2. Transferring stock positions to another party so that true ownership of the stock will be hidden. For example, an investor involved in the takeover of a company may park securities of the company with other investors so that the management of the target company will not know the extent of the investor's stock ownership. Parking for this purpose is generally illegal.