| 1. | a string of daisies linked together to form a chain. |
| 2. | such a chain used as a garland or carried on festive days by a group of women college students. |
| 3. | a series of interconnected or related things or events: a daisy chain of legislative delays and stalemates. |
| 4. | Slang. a group sexual activity in which the participants serve as active and passive partners to different people simultaneously. |
| 5. | Commerce. a series of transactions designed to create the appearance of active trading, as in a particular stock, in order to manipulate the price. |
| daisy chain n.
|
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 Commentary
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 Links
Investment Scams Tutorial
See also: Liquidity, Liquidity Risk, Pump and Dump, Short Squeeze, Volume, Wash Sale
daisy chain
daisy chain networking
A bus wiring scheme in which, for example, device A is wired to device B, device B is wired to device C, etc. The last device is normally wired to a resistor or terminator. All devices may receive identical signals or, in contrast to a simple bus, each device in the chain may modify one or more signals before passing them on.
Characteristic of RS-485, of Apple's LocalTalk, and of various industrial control networks; also often used to describe Thinwire Ethernet (10base2).
(1997-01-07)
daisy chain
A series of connected events, activities, or experiences. For example, The daisy chain of lectures on art history encompassed the last 200 years. This metaphorical term alludes to a string of the flowers linked together. [Mid-1800s]
A line or circle of three or more persons engaged in simultaneous sexual activity. For example, A high-class call girl, she drew the line at daisy chains. [Vulgar slang; 1920s]
A series of securities transactions intended to give the impression of active trading so as to drive up the price. For example, The SEC is on the alert for unscrupulous brokers who are engaging in daisy chains. [1980s]