Round-Trip Trading
Round-Trip Trading is a manipulating practice of inflating transaction volumes by continuous buying and selling a commodity, security or asset. By round-trip trading, a company often sells some asset to another company and than buys it back after some time, usually for a similar price.
This practice is engaged in order to boost number of transactions and sale volumes, artificially.
Best example of round-trip trading is Enron, a company that boosted its expenses and revenues by using this technique widely.
| Related Terms: |