Question Details

	Username: LuckyWoman Rating: Asked to: Chaoxiang Lee Date Created: 22 Jul 2016
Category	28
Tag	Financial
Question	What is 'Front Running'?

Advice from Guru

Hi LuckyWoman,

Front running is the unethical practice of a broker trading an equity in his personal account based on advanced knowledge of pending orders from the brokerage firm or from clients, allowing him to profit from the knowledge. It can also occur when a broker buys shares in his personal account ahead of a strong buy recommendation that the brokerage firm is going to make to its clients.

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