Overreaching

Overreaching

Used in the context of general equities. Creating artificial volume in a stock through activity not generated by normal/natural buyers and sellers in the market.

Overreaching

1. The process by which ownership of one asset is changed into ownership of another asset. For example, one may own a car and then sell it. Afterward, one owns the cash from the sale. The process by which this occurs is called overreaching.

2. The act of buying and/or selling a security repeatedly such that the trading volume goes to an artificially high level. If one overreaches as part of a price manipulation scheme, it is illegal.