Front Running


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.

BREAKING DOWN '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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