painting the tape

Painting the tape

Illegal practice by traders who manipulate the market by buying and selling a security to create the illusion of high trading activity and to attract other traders who may push up the price.

Painting the Tape

A practice in which brokers make numerous buy and sell orders for a security in order to create the appearance of high trading volume. This will cause the price of the security to move in the brokers' desired direction. Because this is a form of price manipulation, painting the tape is illegal. The "tape" refers to ticker tape. See also: Pump and dump.

painting the tape

1. Illegal trading of a security by manipulators among themselves in order to create the illusion of heavy trading activity, perhaps the kind generated by insiders. The increased trades are then reported on the consolidated tape, a situation that often lures unwary investors into the action. Once the market price of the security escalates, the manipulators will sell out, hoping to make a profit.2. Breaking down larger orders into more numerous smaller orders to have more trades appear on the tape and attract investor interest.