The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

OVERTRADING Definition & Legal Meaning

Definition & Citations:

1. General: Occurs when a business conducts more transactions than its working capital can sustain, straining cash flow and creating the risk of insolvency. 2. Securities trading: A trader?s attempt to extract higher commission from a client by buying and selling more than is necessary.


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