OVERTRADING Definition

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OVERTRADING, in securities, is: a. excessive buying and selling by a broker in a discretionary account, or, b. practice of a member of an underwriting group inducing a brokerage client to buy a portion of a new issue by purchasing other securities from the client at a premium. In finance, it is when a firm expands sales beyond a level that can be financed with normal working capital.

Learn new Accounting Terms

PRODUCTION is the creation of value or wealth by producing goods and services.

REPORTING ENTITY is the legal entity for which financial reports are prepared and made available.

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