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Definition of 'Front Running'
The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients have been given the information.
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Investopedia explains 'Front Running'
For example, analysts and brokers who buy up shares in a company just before the brokerage is about to recommended the stock as a strong buy are practicing front running.
Another example is a broker who buys himself 200 shares in a stock just before his or her brokerage plans to buy a large block of 400,000 shares.
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