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Derivatives




Wash Trade


Not to be confused with a wash sale, it is an illegal practice of stock manipulation in which an investor simultaneously sells shares via one broker and repurchases the same via another broker in order to artificially impress other investors and allure them to buy the stock, consequently increasing trading volume and the respective stock price.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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