Business, Legal & Accounting Glossary
A fraudulent arrangement whereby a broker who has direct access to an exchange executes trades on behalf of a broker who doesn’t.
A jitney is a fraudulent investment practice in which two investors or two brokers trade shares of a security back and forth to give others a false impression of high trading activity. The effect of a jitney is that the price of the security will rise. Brokers may practice a jitney for the sake of garnering commissions. A jitney usually occurs with penny stocks, whose prices are normally very low. A jitney is also called circular trading. The term “jitney” also refers to a legal arrangement where a broker who has direct access to an exchange performs trades for a broker who does not have this access. The term “jitney” is slang for anything that is made cheaply and poorly.
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This glossary post was last updated: 15th February, 2020