A bucket shop is a derogatory term for a brokerage firm or similar financial entity known for questionable practices and typically lacking membership in established trade organizations.
Channel stuffing is a practice where a company inflates sales figures by sending more products through distribution channels than retailers can sell, potentially deceiving financial markets if done intentionally.
Check kiting is an illegal scheme that occurs when individuals establish a false line of credit by exploiting the delay in the check clearing process between different banks.
To falsify financial records or statements with the intention of misleading others about the financial performance or financial position of an accounting entity.
Counterfeit refers to items or documents that are forged, imitated, or fabricated without authorization, usually with the intent to deceive and pass the imitation off as genuine.
Daisy chain refers to the buying and selling of the same items multiple times, often to artificially inflate trading activity. Commonly associated with stocks and shares, the term describes a practice where the same items are included in sales figures multiple times.
Kiting, also known informally as 'kite-flying', refers to the practice of creating false or fraudulent checks to leverage the time delay in bank processing. This term is also known as the discounting of an accommodation bill at a bank, with the knowledge that the person on whom it is drawn will dishonor it.
Kiting is a fraudulent financial practice used to make the cash position of a company appear more favorable than it actually is by transferring funds between accounts just before the end of an accounting period.
A transaction intended to create the appearance of rights and obligations different from the actual intended agreements to deceive other parties, often tax authorities.
Under-reporting is the improper failure to report accurate income on a tax return, leading to potential legal and financial consequences.
Watered stock refers to shares of a company that are issued at a price much higher than their intrinsic value.
