Define: Kiting

Business, Legal & Accounting Glossary

Definition: Kiting



Advertisement



Full Definition of Kiting


Kiting, or “floating,” is a banking term that refers the illegal practice of drawing and depositing two checks at two separate banks in hopes of taking advantage of the time it takes for the checks to clear. This means that there is a time period in kiting where the bank that cashed the check doesn’t have the money yet, and the bank that issued the check isn’t yet aware that the check was issued. This window is where kiting comes in. With kiting, the process of writing two checks is repeated as long as both banks believe there is money behind the checks. Kiting also refers to changing the numbers on a check to increase the face value. Kiting may also refer to the manipulation and inflation of stock prices. Kiting in any form is highly illegal.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/kiting/
Modern Language Association (MLA):
Kiting. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 06, 2020 https://payrollheaven.com/define/kiting/.
Chicago Manual of Style (CMS):
Kiting. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/kiting/ (accessed: April 06, 2020).
American Psychological Association (APA):
Kiting. PayrollHeaven.com. Retrieved April 06, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/kiting/

Definition Sources


Definitions for Kiting 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: 10th February, 2020