Round tripping

Round tripping,

Definition of Round tripping:

  1. The practice of earning profit by borrowing on overdraft and relending in the money markets; (later also) the practice of investing capital abroad and then reinvesting it in its country of origin, in order to take advantage of favourable tax rates, etc., given to foreign investors.

  2. A strategy used by businesses who sell an asset to another business with an agreement that the asset will be bought back at a time in the future. The strategy is used to increase the apparent amount of revenue and sales that have been made during a specific period of time. This practice is common in the business world but not everyone agrees it is a good business practice. Also known as round trip transactions.

  3. The action of making a round trip.

Meaning of Round tripping & Round tripping Definition