Front Running

What does it Mean? 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.
Investopedia Says... 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.

Terms Related Links

Broker
Bucket Shop
Bucketing
Buy
Churning
Circular Trading
Guilt Edged Investment
Pump and Dump
Tailgating

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