What is Daisy chaining?

In investing is Daisy Chaning is a strategy that involves creating a false impression of the movement of a given security. The Daisy chaining process requires the creation of a number of transactions that makes safety look more active than it really is. Thanks to this appearance of robust movement, safety is more attractive to investors and can cause a real interest that creates real movement.

While the practice of chaining Daisy was once very common, it is no longer. Many nations have adopted legislation that defines this strategy as illegal. There are two main reasons why government regulations prohibit the use of Daisy chaining. First, the strategy requires the development of a number of transactions that are not real. Because Daisy chaining is based on creating a false impression, the method can have a certain degree of impact on natural activity on similar securities.

Second, the aim of the chaining of Daisy is always the result. While a strategy is to create a real movement by creating perception already ongoing noInformation, the opposite may occur. When false momentum created by Daisy chaining attracts several investors, they can quickly find that their investments will drop rapidly as soon as false transactions are interrupted. The final result is that investors can lose a large amount of money on the basis of false information that has been deliberately made available to the business community.

creation of this type of illegal intermediary system requires the participation of brokers and investors. An investor who wants to stimulate activity in a given security to raise the price for the unit and then sell for profit can work in hand with a broker to create the illusion of security for security. When several investors and brokers are involved, which are referred to as the Daisy chain.

While the name of the strategy may seem simply colorful, there are some similarities between the actual necklace or a chain made ofDaisy's daisy and chaining from the security. In both cases, the daisy chain for the eye is quite attractive. It seems that both chains will work very well for some time and create a certain degree of interest. Finally, both Daisy chains begin to weaken and eventually disintegrate, and leave little or nothing.