Painting the Tape
An illegal action by a group of market manipulators buying and/or selling a security among themselves to create artificial trading activity, which, when reported on the ticker tape, lures in unsuspecting investors as they perceive an unusual volume.
Investopedia Commentary
After causing a movement in the security, the manipulators hope to sell at a profit.
Related Links
Understanding The Ticker Tape
Investment Scams Tutorial
See also: Fighting the Tape, Print, Runoff, Tape Is Late, Ticker Tape
painting the tape
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.
Breaking down larger orders into more numerous smaller orders to have more trades appear on the tape and attract investor interest.