What is Jitney?
How Does Jitney Work?
Let's say John Doe and Jane Smith are penny stock that trades on the OTC markets.
To do this, John buys 2,000 of the stock and sells them to Jane. Jane then sells them back to John, who sells them back to Jane. Each time the shares trade, the reported trading volume of the shares increases by 2,000. Soon, other investors notice the spike in trading volume, and not knowing that it's because two brokers are acting illegally, decide to invest in the stock.
Why Does Jitney Matter?
Jitneys are illegal because they distort the. Their name comes from the slang for anything that is of poor quality or cheaply made.