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Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

wash trading

Wash trading occurs when a trader buys and sells the same securities simultaneously. Wash trades benefit brokers who earn commissions from the trades. Wash trades can also be used to create the false impression that there is investor interest in the security. Wash trades conducted around the endpoint of a tax year are also sometimes used to evade taxes. Wash trades are not in and of themselves illegal but they are almost always used for illegal purposes.

 

wash trading in the news

In December 2012...

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