painting the tape


The illegal practice in which traders buy and sell a specific security among themselves, creating the illusion of high trading volume and significant investor interest, which can attract unsuspecting investors who might then buy the stock and enable the traders to profit.

Use painting the tape in a sentence

They were caught painting the tape. They gave themselves away by having such high trading volume with the stock.

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You should always make sure that you are not painting the tape in any way or your reputation may be damaged forever.

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My stockbroker was arrested last month for stock fraud after the SEC uncovered a trading conspiracy among him and some of his friends in which they were painting the tape.

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