Business, Legal & Accounting Glossary
A reverse desk is a tactic purportedly used by professional traders and hedge funds to disguise their true trading intent.
In the reverse desk, a trader — typically one who the street considers to be influential or savvy — accumulates a small amount of shares of a publicly-traded company and then proceeds to sell them through a variety of Wall Street brokers. The intent of this manoeuvre is to spread the rumor that the trader is unloading shares of the company in the hopes that other traders will sell large blocks of shares, thus depressing the stock price. If successful in depressing the stock price sufficiently, the original trader will then take a large long position in the stock at a lower price than he or she would have typically gotten.
This tactic has not been conclusively proven to exist. Even if the reverse desk does exist, it would not be illegal, as the trader hasn’t said or produced anything materially false about the company, unlike the poop and scoop stock manipulation scheme.
poop and scoop
take the street
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.
Definitions for Reverse Desk are sourced/syndicated and enhanced from:
This glossary post was last updated: 29th November, 2021 | 0 Views.