When a manager only fills offers on one side keeping the rest until they see how the market is going to behave. If things go well all are let out but if not only the ordered shares are sold. The only risk is a penny a share. This is illegal.

More On This Topic

Link to This Definition
Did you find this definition of PENNY JUMPING helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary