Your English writing platform
Discover LudwigExact(4)
James Parsons, a managing director at Barclay's, said his company's international funds could not trade at a stale price, because the funds trade on United States exchanges even after overseas markets close.
If something important happens in the U.S. market that will probably boost overseas markets the next day — say, a big tech rally — market timers buy the international mutual fund at its current cheap, stale price and then sell it the next day at a tidy profit.
The misnomer synonym refers to Stale Price Arbitrage.
For example, as Frenkel notes, it's almost certain that Fidelity regularly prepares what's called a "stale price report" that lists those of its securities whose price hasn't changed for a defined period, and Fidelity surely has extensive procedures to determine when and whether those assigned prices are still valid.
Similar(56)
Another practice takes advantage of "stale prices" on foreign stocks.
Some mutual funds allowed favored customers to trade mutual funds based on stale prices.
Stale prices exist in hedge funds for the same reason they do in mutual funds.
STALE prices, which have been a problem for mutual funds, afflict hedge funds as well.
The stale pricing gives shrewd traders a chance at easy profit.
STALE pricing has been at the root of the mutual fund scandals.
Exploiting those stale prices by quickly buying shares and cashing out when prices adjust is called market timing.
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com