Daisy Chaining

Business, Legal & Accounting Glossary

Definition: Daisy Chaining

Full Definition of Daisy Chaining

Daisy chaining is an illegal practice undertaken by brokers and investors to artificially inflate stock prices for personal gain. Daisy chining entails forging false transactions in order to simulate a dynamic, high-interest environment with respect to a specific security. Once such a condition is achieved, the increasing volume and growth of the stock induced by daisy-chaining attracts unsuspecting investors. Investors who are unaware of daisy-chaining will typically suffer a loss once the hype dissipates. Perpetrators of daisy-chaining, on the other hand, will sell their holdings at an ample profit before the stock tailspins. Stocks with low initial volumes are usually selected for daisy-chaining. Clusters of brokers and investors involved in daisy-chaining are called daisy chains. Daisy chaining is also known as wash selling.

Synonyms For Daisy Chaining

Wash selling

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Daisy Chaining. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 20, 2021 https://payrollheaven.com/define/daisy-chaining/.
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Daisy Chaining. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/daisy-chaining/ (accessed: September 20, 2021).
American Psychological Association (APA):
Daisy Chaining. PayrollHeaven.com. Retrieved September 20, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/daisy-chaining/

Definition Sources

Definitions for Daisy Chaining are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 7th February, 2020 | 1 Views.