Advanced English Dialogue for Business – Daisy chain

Listen to a Business English Dialogue About Daisy chain

Scarlett: Hi Michael, have you heard about a “daisy chain” in business and finance?

Michael: Yes, I have. A daisy chain refers to a series of transactions where parties buy and sell the same assets among themselves at progressively higher prices to create the illusion of trading activity and inflate prices artificially.

Scarlett: That’s right. It’s a form of market manipulation that can deceive investors and distort market prices.

Michael: Are there any regulatory measures in place to prevent daisy chaining?

Scarlett: Yes, there are. Regulatory bodies such as the Securities and Exchange Commission (SEC) closely monitor trading activity and investigate suspicious patterns that may indicate daisy chaining or other forms of market manipulation.

Michael: I see. So, regulators play a crucial role in maintaining market integrity and preventing fraudulent practices like daisy chaining?

Scarlett: Exactly. Their oversight helps ensure fair and transparent markets for all participants.

Michael: Are there any consequences for individuals or entities caught engaging in daisy chaining?

Scarlett: Yes, there are severe consequences. Those found guilty of market manipulation may face fines, legal action, and even imprisonment.

Michael: That’s serious. So, it’s essential for market participants to adhere to ethical and legal standards to avoid engaging in fraudulent practices like daisy chaining?

Scarlett: Absolutely. Upholding integrity and transparency in financial markets is essential for fostering trust and confidence among investors.

Michael: Thanks for the informative discussion, Scarlett. Daisy chaining sounds like a concerning practice that investors should be aware of.

Scarlett: You’re welcome, Michael. Understanding the risks associated with market manipulation can help investors make more informed decisions and protect their investments.