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parking investment & finance definition
- Placing idle funds in a safe, short-term investment while awaiting the availability of other investment opportunities. Many investors end up parking proceeds from a security sale in a money market account while searching for other securities to purchase.
- Transferring stock positions to another party so that true ownership of the stock will be hidden. For example, an investor involved in the takeover of a company may park securities of the company with other investors so that the management of the target company will not know the extent of the investor's stock ownership. Parking for this purpose is generally illegal.
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