Prearranged trading

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Prearranged trading

Possibly fraudulent practice whereby commodities dealers carry out risk-free trades at predetermined prices to acquire tax advantages.

Prearranged Trading

The practice of two commodity dealers trading with each other at prices upon which they have agreed in advance. Pre-arranged trading is designed to exclude other dealers from the market, to gain a tax advantage, or both. As a result, pre-arranged trading is illegal.
References in periodicals archive ?
Kao, the company's co-founder, chairman and CEO, and two family trusts, of which he is a trustee, have each established pre-arranged trading plans to sell a portion of their shares in the company over a designated period.
Davis, have each adopted a pre-arranged trading plan to buy and sell shares of NMT common stock.
As with the prior stock repurchase authorizations, InterDigital may purchase stock from time to time through open market purchases, pre-arranged trading plans or privately-negotiated transactions.
announced today that its Board of Directors has adopted a policy that provides for the use of pre-arranged trading plans by persons subject to the company's insider trading policy.
Carr, its Chairman and Chief Executive Officer, adopted, prior to the commencement of the Company's regular quarterly trading blackout period for the first quarter of 2011, a pre-arranged trading plan in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934 and the Company's policies with respect to sale of shares held by insiders.
Burrell, who retired as Co-CEO in August 2002 and as Co-Chairman in August 2004, has established a pre-arranged trading plan to sell a portion of his shares in the company over a designated period.
Schwartz has informed the company that he has canceled his pre-arranged trading plan under SEC Rule 10b5-1 of the Securities Exchange Act of 1934 which was previously announced on February 18, 2010.
Endres, chairman and chief executive officer, established a pre-arranged trading plan to sell a portion of his company stock over a designated period of time in accordance with Rule 10b5-1 of the Securities and Exchange Commission.
Kao, the company's co-founder, Chairman and CEO, and two family trusts of which he is a trustee have established pre-arranged trading plans to sell a portion of their shares in the company over a designated period.
Christine Schwartz, and certain family trusts, intend to establish pre-arranged trading plans under SEC Rule 10b5-1 of the Securities Exchange Act of 1934 under which they will sell up to 5 million shares of APAC stock over the next two years at prices above today's closing price.
As with the prior stock repurchase authorizations, InterDigital may purchase stock from time-to-time through open market purchase, pre-arranged trading agreements, or privately-negotiated transactions.
Coltrane has adopted, in accordance with Rule 10b5-1 of the Securities and Exchange Act of 1934, a pre-arranged trading plan to sell shares of Company common stock.