Kiting


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Related to Kiting: Check kiting

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 ?
Waiting for the wind is a necessary part of snow kiting.
Power kiting without insurance is the same as driving a car without insurance.
Rubesh and his kiting compatriots are preparing for the first North American Buggy Championship Races, to be held Saturday through Monday at El Mirage Dry Lake here.
Since 1962, Go Fly a Kite continues to be the innovative leader of the kite industry, and this year the kiting industry leaders from across the country will travel to attend the Kite Trade Association Show.