Trading method that is usually illegal, which involves two individuals (typically dealers or brokers) agreeing to trade at a specified price. The agreement is usually made before the market opens, and then completed sometime during trading hours. The benefit of prearranged trading is an elimination of risk as well as tax benefits, but most of the time it breaks trading regulations.
Related information about prearranged trading:
- What is prearranged trading? - InvestorWords.com
Definition of prearranged trading: Trading method that is usually illegal, which ... The benefit of prearranged trading is an elimination of risk as well as tax ...
- Prearranged Trading - Financial Dictionary - The Free Dictionary
Possibly fraudulent practice whereby commodities dealers carry out risk-free trades at predetermined prices to acquire tax advantages.
- What is prearranged trading? - BusinessDictionary.com
Definition of prearranged trading: An illegal practice in which trading takes place in a manner agreed on between market participants. For example, if a floor ...
- Prearranged trading Definition - NASDAQ.com
Prearranged trading : read the definition of Prearranged trading and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
- Prearranged Trading Law & Legal Definition
Prearranged trading is a trading between brokers in accordance with an expressed or implied agreement or understanding that gives the appearance of trading ...
- prearranged trading - Invest Definition
prearranged trading definition: An arrangement that is made before trading commences ... Prearranged trading is illegal, whether the arrangement is implied or ...
- What is Prearranged Trading? Definition and Meaning « Knowledge ...
Prearranged trading illustrates an implied agreement between brokers. Mostly this agreement is private and only known to the participating brokers.
- Insiders with a Curious Edge - Businessweek
Dec 7, 2006 ... The SEC's solution was to create prearranged trading plans, known as 10b5-1 plans for the rule that authorized them. Launched six years ago, ...