Regrating, pronounced /rɪˈɡreɪtɪŋ/, is a term used in business and law that means buying goods, then selling them in the same market at a higher price. The word may be unfamiliar to many people because it is not commonly used in everyday conversation. However, its spelling is straightforward, with "reg-" representing "again" and "rating" meaning "to price." The correct pronunciation of the word includes stress on the second syllable and long "a" sound in the second letter.
Regrating is a term commonly used in economics and commerce to refer to the act of buying goods and then reselling them at a higher price, often in the same market or location. It involves purchasing commodities with the intention of selling them quickly and at a markup, thereby profiting from the difference in price.
Regrating is typically associated with activities that disrupt the smooth operation of free markets, as it can create artificial scarcity and negatively impact price stability. It is often considered undesirable behavior in many industries and is sometimes prohibited by law.
This practice is commonly seen in contexts such as the agricultural sector, where people may purchase crops or produce from primary producers, such as farmers, and then resell those goods to retailers or consumers at a higher price. In some cases, regraters may even hoard goods temporarily to create artificial scarcity, further driving up the prices.
Regrating can be seen as a form of arbitrage, as it involves exploiting price differences in the market. However, it is important to note that regrating can have adverse effects on market efficiency and consumer welfare, as it distorts the natural supply and demand dynamics.
Overall, regrating is the act of buying goods with the intent of reselling them at an inflated price, often disrupting the normal functioning of markets and impacting price stability.
Forestalling the market; removing the surface of an old hewn stone.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
The word "regrating" has its roots in Middle English. It is derived from the verb "regrate", which originated from the Old French word "regrater". In Old French, "regrater" meant "to buy up provisions in order to sell them at a profit". The word can be further traced back to the Latin word "gratum", meaning "favorable" or "pleasing". Over time, the meaning of "regrate" shifted to refer specifically to the act of buying goods at a market and selling them in the same market, usually at a higher price. Today, "regrating" is often used in economic and legal contexts, referring to the practice of selling goods with the intent to distort market prices.