Circular Trading

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A fraudulent trading scheme where sell orders are entered by a broker who knows that offsetting buy orders, the same number of shares at the same time and at the same price, either have been or will be entered. These trades do not represent a real change in the beneficial ownership of the security.
[Source: http://www.investopedia.com/terms/c/circulartrading.asp]


Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University