freeriding


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Free-Riding

1. The practice of buying a security and then selling it without having enough cash or cash-equivalent to pay for the original purchase. In the United States, transactions do not settle for three days; that is, a buyer does not pay for a security until three days after he/she buys it. If the buyer does not have the cash to pay for the purchase, he/she may theoretically sell the security on the same day and use that money to pay for the purchase. Free-riding is illegal under SEC rules and is prohibited by the Financial Industry Regulatory Authority.

2. An illegal practice in which an underwriter does not place a new issue of a security and then later sells it for a higher price.

freeriding

1. An action taken by a syndicate member to withhold a portion of a new security issue from sale because of a belief that a later reselling of the withheld security will yield a higher price. Freeriding is prohibited by the SEC.
2. The purchase and sale of a security in a short period of time without putting up any money. Freeriding by investors is prohibited by Federal Reserve Board's Regulation T. Compare frozen account.
References in periodicals archive ?
85) In place of extolling the virtues of philanthropy generally, these methods have brought renewed analytical rigor, and have applied the concept of freeriding to public goods allocations in original ways.
Much of the terrain is designed for intermediate to advanced skiers and boarders, and it is especially popular for its freeriding.
For late entrants, better availability of information about the market, lower risks and possible opportunities for freeriding and cost saving might compensate the absence of first mover advantages and thus also lead to a high foreign market performance.
This suggests that existing law provides workable mechanisms for controlling freeriding.
Sitting between Giant's allmountain and downhill bikes, the freeriding Faith has a cliff-eating 7 inches of travel, yet is 21.
The second round of the season from the Piazza Duca d'Aosta in Milan, where the Europe-wide freeriding tour continues.
the festival moved to the Berkshires and grew to include three days of cross country mountain biking at Brodie Mountain, downhill riding at nearby Jiminy Peak, freeriding at a bike park, and BMX riding on a course at the site.
Freeriding on a politics by principle induces self-interested politicians to offer privileges to well-organized interest groups in exchange for supporting votes in democratic elections.
where the sport of freeriding was born more than a decade ago.