Kiting

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Kiting

Used in banking to refer to the practice of depositing and drawing checks at two or more banks and taking advantage of the time it takes for the second bank to collect funds from the first bank.
Also refers to illegally increasing the face value of a check by changing the numbers on the check.
In the context of securities, refers to the manipulation and inflation of stock prices.

Kiting

1. The illegal practice of deliberately misrepresenting the value of a security or transaction in order to extract more funds from a counterparty.

2. The illegal practice of writing a bad check on an account at one bank, depositing it at a second bank, and withdrawing cash. Check holds have made kiting more difficult than it once was.

3. The illegal practice of defacing a check by increasing the amount of money written on it. One may take advantage of bad handwriting, for example, by changing "ten" to "twenty" on the check.
References in periodicals archive ?
Just before the checks are returned for payment to the first bank, the kiter covers them by depositing checks drawn on the account in the second bank.
Until this week, most of our coverage had sourced the members who had filed suits against the credit union and associates of incarcerated check kiter Danny Ray Butler.
The team also raised funds for the Global Kiter Foundation, a nonprofit organization that helps people with disabilities get into kiting on land and water, while improving environmental awareness.
Mike said: "It was a shame it had to end like that because Sean was probably the best kiter of us all and we had done the hardest part.
The equipment's never been available for a disabled snow kiter before.
In October, we were kiteboarding at Maui's Kite Beach when myself and some friends noticed another kiter moving strangely in the water, " says Ovcharov.
The contrast of the intense blues of the ocean with the rich rusts and ochres of the sand and the vivid reds, browns and purples of the distant mountains are a visual feast no kiter soon forgets, even more so with ones' senses heightened by carving through the blue lagoons powered only by the wind.
v The term gender-based violence, rather than violence against women, is used in this article because it acknowledges that gender relations are imbued with asymmetrical distributions of" power and to reflect a more trans-inclusive term (O'Toole, Schiffman, Kiter Edwards, 2007).
Kiter On Tramore Beach from Donegal's Sinead Magill was named the most popular picture from an Ulster entrant.
A kiter since he was six (he's now 71) Ray hasn't missed the island's annual kite festival for the last 12 years.