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1. To make both buy and sell orders through different brokers to create the impression of increased interest in a security and thereby raise the price. This is a form of price manipulation and is forbidden by the Securities Exchange Act of 1934. It is less formally known as churning.

2. In brokering, to make more trades on a client's holdings than are necessary in order to maximize commissions. Overtrading is illegal.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


1. To purchase a client's securities at an above-the-market price in return for the client's purchase of part of a new issue.
2. See churn.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
But in 1985 the company overtraded and, following the financial collapse of a major creditor, went into receivership.
The fact that the newspaper business in South Africa is seriously overtraded has not deterred Obaigbena.
They [the US Assemblies of God] are going through a hard time because like most other movements they have overtraded on the great missionary programme (11 July 1949).(13)
Recessionary economic circumstances and the slow pace of expansion in the formal economy explain the surge of survivalist enterprise in often already "overtraded" income niches such as informal home-based spaza retailing and hawker operations.(22) In addition, the demise of the formal economy is linked to expanding levels of urban farming--a phenomenon of "ruralization" that has been observed in other parts of Africa--on peripheral vacant land around South Africa's major metropolitan areas.(23)