Kiting


Also found in: Dictionary, Thesaurus, Legal, Idioms, Encyclopedia, Wikipedia.
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 ?
Wind speeds of 10 to 20 mph are ideal for snow kiting, according to Carlson.
"We have entered a number of international competitions as well as some in Kuwait in which we always end up in the 'top five' for biggest or most beautiful kite," said Ali, who hopes the recent display in Bahrain near Muharraq Bridge across from the Radisson SAS Hotel will boost interest in kiting.
BEACH goers are facing new dangers from the rapidly growing sport of power kiting, according to coastal officials.