holding the market

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Holding the market

The illegal practice of maintaining and/or placing a sufficient number of buy orders to create price support for a security or commodity in an amount sufficient to stabilize a downward trend.

Holding the Market

A normally illegal practice in which a broker places or maintains buy orders for a security whose price is rapidly falling in order to artificially inflate demand and create a price floor. The main exception to its illegality is a situation in which the SEC gives an underwriter permission to attempt to hold the market for a new issue. Even in situations where it is legal, holding the market is a high-risk practice as the broker must normally buy large numbers of shares in order to curb falling demand, and, if he/she fails to create a price floor, he/she stands to lose a great deal of money. See also: Depth.

holding the market

See peg.