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Round-Trip Trading

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Round-Trip Trading
The act or practice of two or more companies trading assets or securities back and forth at approximately the same price. For example, Company A may sell securities to Company B and agree to buy them back at the same price at a later time. Round-trip trading creates the impression of a high trading volume, suggesting interest in assets or securities that may not actually be there. It also increases a firm's earnings and expenses without increasing or decreasing its net income. It is a form of market manipulation. See also: Churning.


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Nymex had charged the company with ten separate counts, including engaging in round-trip trading, and in conduct that was detrimental to the exchange.
attorney request documents and information about Duke's trading activities, including so-called round-trip trading.
Round-trip trading costs are considered before an investment decision is made.
 
 
 
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