Define: Jitney

A jitney is a form of informal or unlicensed transportation service, typically involving a small van or minibus that operates along a fixed route or on-demand basis, picking up passengers for a fare. Jitneys are commonly found in urban areas or regions with limited public transportation options, providing a flexible and affordable alternative for commuters. While jitneys can offer convenient transportation services, they may operate outside of formal regulations or licensing requirements, leading to safety concerns, regulatory issues, and competition with traditional public transit systems. Despite these challenges, jitneys play a significant role in meeting the transportation needs of underserved communities and addressing gaps in public transit coverage.

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: 29th March, 2024.