We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.
© 2016 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Freeriding

Definition:

A no-no. Freeriding is where a customer buys securities and then sells them without paying for the original purchase. It also refers to a syndicate member withholding some of a new issue and sells it later for a higher price. Both activities are illegal. Engage in them and you could win a 5-year date with Bubba.