Daisy Chain
A group of unscrupulous investors who, practicing a kind of fictitious trading or wash selling, artificially inflate the price of a security so that they sell it at a profit. Investopedia Says:
Investors who do not look carefully at a stock are the usual prey of a daisy chain. As a stock rises due to increased volume, investors who didn't do all their homework may be attracted to the stock because they want to participate in the rising price. These investors are typically caught owning a stock that continues to depreciate long after the daisy chain sells out their positions for a profit.
Manipulating price is typically very difficult in stocks with heavy volumes, so those stocks with low liquidity are much more susceptible. Related Terms:
Liquidity
Liquidity Risk
Pump and Dump
Short Squeeze
Volume
Wash Sale |