Tailgating

DEFINITION of 'Tailgating'

When a broker or advisor buys or sells a security for a client(s) and then immediately makes the same transaction in his or her own account.

BREAKING DOWN 'Tailgating'

This is not illegal like front running, but it is not looked upon favorably because the broker is mostly likely placing a trade for his or her own account based on what the client knows (like inside information).

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