Ghosting

In the dating world, ghosting happens when someone we’re totally into suddenly stops returning our calls and texts and pretty much vanishes off the face of the planet with no explanation. Not naming names, Paul.

In the financial world, ghosting is a tad different. Ghosting is what happens when two or more entities get together to influence the price of a stock, either positively or negatively. Not only is this kind of shady, it’s totally illegal. The whole premise behind the stock market is that stocks compete with each other on fair and equal ground, and when people or groups or organizations start conspiring to interfere with that competition, it’s no longer fair or equal. And that’s bad.

Find other enlightening terms in Shmoop Finance Genius Bar(f)