Freeriding
1. An illegal practice in which an underwriting syndicate member withholds part of a new securities issue and later sells it at a higher price.

2. The illegal activity of buying a stock and selling it before paying for the purchase.

Investopedia Says:
Due to the unfair advantage both of these practices give to those able to exploit freeriding opportunities, freeriding is illegal and prohibited by the Securities & Exchange Commission and the National Association of Securities Dealers.

Related Terms:
Bucket Shop
Free Rider Problem
Front Running
National Association of Securities Dealers - NASD
New Issue
Securities & Exchange Commission - SEC
Underwriting

• Over-The-Counter (OTC)
• Overtrading
• Overvalued
• Overweight
• Overwrite
• Overwriting
• Ovoboby
• Owner Financing
• Own-Occupation Policy
• P
• Pacific Exchange (PCX)
• Pacific Exchange (PCX)
• Package Deal
• Pac Man
• Pac-Man Defense
• Paid In Capital
• Paid-Up
• Paid-Up Capital
• Painting The Tape
• Paired Shares
• Pairing Off
• Pairoff
• Pairs Trade
• Palladium
• Panel Bank