wash trade


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Wash

A situation in which the profit on one activity or investment equals the loss on another. When an investment is a wash, it is said to break even.

wash trade

A transaction designed to make it appear that a purchase and sale has occurred even though no change in ownership occurred. For example, an investor might simultaneously buy and sell shares in one company through two different brokerage firms in order to create the appearance of substantial trading activity that will draw in other investors. Wash trades are illegal.
References in periodicals archive ?
Wash trades is the name given to the practice of banks creating fake trades to pay brokers through commissions.
Nine of the wash trades made between September 2008 and August 2009 generated more than 170,000 pounds fees to reward one broker for helping UBS.
In this regard, an order was passed against Pearl Capital Management (Pvt) Limited, a member of Karachi Stock Exchange (KSE) for execution of wash trades in its proprietary account and it was imposed penalty of Rs.