Dumping (redirected from dumps)

Dumping

Used in the context of general equities. Offering large amounts of stock with little or no concern for price or market effect.

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Dumping

1. The act of exporting a good to a country where the exported good is much less expensive in the importing country than domestically produced goods of the same type. This can result in a handsome profit for the exporter. Importing countries attempt to counteract dumping by setting up tariff barriers. Some countries peg their currencies artificially low so as to enable dumping. See also: Outsourcing.

2. The act of selling at a loss. This may apply to selling a stock, especially in a panic sale, to minimize losses. Alternatively, it may apply to a company selling low on purpose to gain market share or force competitors into a costly price war.

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dumping

1. The selling of large amounts of a stock or stocks in general at whatever market prices are in effect. For example, investors might dump stocks upon hearing of an outbreak of fighting in some part of the world.

2. The selling of a product in one market at an unusually low price while selling the same product at a significantly higher price in another market. For example, a firm may sell a product in its home market at a price covering all costs and then sell the product in a foreign market at a significantly lower price covering only variable costs.