Just call us Bond. Amortized bond.
Over 700 finance terms, Shmooped to perfection.
This sneaky scheme's goal is to drive up the price of a security and artificially create activity with the intent of drawing in new buyers. How does it work? Two or more parties agree to buy and sell the security at prearranged prices and times with no beneficial change in ownership. The new buyers drive up the price, which in turn allows the violators who were in on the scheme to sell their securities at a higher price.