dumping investment & finance definition
- Selling
goods or commodities in another country at prices that are substantially below
the going market price. International trade regulations attempt to prevent
dumping. Violations may be reported to the
World Trade Organization.
- Selling a
large amount of securities in a market with no concern for what effect that is
likely to have on the price or the product.
See dumping in Wall Street Words
- The selling of large amounts of a stock or stocks in general at whatever market prices are in effect. For example, investors might dump stocks upon hearing of an outbreak of fighting in some part of the world.
- The selling of a product in one market at an unusually low price while selling the same product at a significantly higher price in another market. For example, a firm may sell a product in its home market at a price covering all costs and then sell the product in a foreign market at a significantly lower price covering only variable costs.
Learn more about dumping