Dumping is a term that is used in financial markets as well as
in international trade. In the context of buying and selling
securities, dumping refers to the practice of selling large
blocks of securities. More specifically, when dumping securities
the seller is primarily interested in getting rid of the
securities at any price. One simply dumps, or unloads, on the
market with no regard to the selling price of the securities.
Dumping is also used in a commercial sense in the context of
international trade. It refers to the practice of one country
selling commodities or finished products in another country
below cost or fair market value. Predatory dumping occurs when
one nation exports goods to another nation below cost or fair
market value in order to obtain market share at the expense of
domestic competitors. In many cases, predatory dumping drives
out domestic competition. Then, having established a dominant
marketing position in the industry, the predatory dumpers raise
their prices well above previous le