Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• FREERIDING
  
  Practice in which a brokerage client buys a security in a cash account and sells the same security without putting up money for the purchase, an activity that encourages speculation and violates the credit extension provisions of the Federal Reserve Board. The penalty for freeriding requires that the customer's account be frozen for 90 days.
  
  Back