market timing


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Related to market timing: Late trading

market timing

n.
The trading of securities based on predictions of short-term price movements.

market timer n.
References in periodicals archive ?
In this book, he analyzes the causes of the late trading and market timing scandal, examines the scandal's effects on investors, and explores the regulatory response by the New York Attorney General, the SEC, and NASD/FINRA.
Our investment is enhanced by the fact that the acquisition does not have to account for construction and market timing risks.
LIFE INSURERS ARE CONCERNED that a regulation proposed by the Securities and Exchange Commission to curb abusive market timing will put variable annuities at a disadvantage to mutual funds because the proposed rule fits two-tier structures poorly.
Ofer, 1986, "Correcting for Heteroscedasticity in Tests for Market Timing Ability", Journal of Business, 59:585-598
The announcement that Marsh & McLennan would keep the businesses put to rest recent speculation that Marsh intended to divest itself of Putnam, which has suffered financially from regulatory investigations and lawsuits over alleged market timing and excessive short-term trading by its employees, as well as "shelf space" arrangements with broker-dealers.
A widespread abuse involved mutual fund companies' investment advisers (firms that provide management and other services to funds) entering into undisclosed arrangements with favored customers to permit market timing (frequent trading to profit from short-term pricing discrepancies) in contravention of stated trading limits.
Recently, the SEC adopted a new rule, Disclosure Regarding Market Timing and Selective Disclosure of Portfolio Holdings, requiring more detailed disclosures in different parts of the fund's prospectus and statement of additional information.
Companies adopting the new release can utilise the integrated auditing tool and calculate net asset value so that market timing trading is eliminated.
Spitzer's investigations alleged that Bank of America and Janus had engaged in market timing arrangements and after-hours trading deals that benefited certain large clients at the expense of individual investors.
These market timing or stale price trades inflict harm on existing investors in a fund, who are normally small investors who simply buy and hold a fund for the long term.
Market timing involves rapid trades by professional dealers who raid mutual funds at the expense of small savers.