TeachMeFinance.com - explain Cross trade
Cross trade -- A stock market designation for a simultaneous
purchase and sale of the same stock.
The term cross trade also is a synonym for a wash trade or
transaction when a stock is simultaneously bought and sold
in order to make a quotation. Cross trading or washing
when extensive in a stock is generally for the purpose of inducing
speculation in the stock by imparting apparent activity
to it. The dealings are fictitious and so are the prices.
Bucketing operations may be carried on by means of cross
trades; see Bucketing.
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