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Finance Dictionary and Glossary of Investment Terms
Used in of banking to refer to the practice of depositing and drawing checks at two or more banks and taking advantage of the time it takes for the second bank to collect funds from the first bank.Also refers to illegally increasing the face value of a check by changing the numbers on the check.In the context of securities, refers to the manipulation and inflation of stock prices.
Illegally benefiting from float, for example by depositing and drawing checks between accounts at two or more banks.
1. The act of misrepresenting the value of a financial instrument for the purpose of extending credit obligations or increasing financial leverage. 2. A fraudulent act involving the alteration or issuance of a check or draft with insufficient funds.