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. 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. Related Terms: Broker Bucket Shop Bucketing Buy Churning Circular Trading Guilt Edged Investment Pump and Dump Tailgating |