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.

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.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Front running — is the illegal practice of a stock broker executing orders on a security for their own account (and thus affecting prices) before filling orders previously submitted by their customers. After the broker has made their original transactions, they… …   Wikipedia

  • Front running — o inversión ventajista[1] es una práctica ilegal que puede llegar a cometer un operador de mesa de dinero[2] o bien corredores de Bolsa que ejecuten órdenes de terceros en los mercados de capitales. La práctica consiste en tomar posiciones… …   Wikipedia Español

  • front-running — frontˈ running noun A form of insider dealing on the Stock Exchange in which traders make deals for themselves before placing customer orders that are large enough to affect prices • • • Main Entry: ↑front …   Useful english dictionary

  • front-running — adjective most likely to win a competition, game, or election …   Usage of the words and phrases in modern English

  • front-running — A type of misuse of information, where the employees of a brokerage firm or a bank trade in equity shares using price sensitive information that is privately available to the firm. London Stock Exchange Glossary * * * front running ˈfront running …   Financial and business terms

  • Front-Running — Die Praxis des Front Running bezeichnet im Börsenhandel das Ausnutzen des vertraulichen Wissens um die Handelsstrategie des Mandanten (vor der Durchführung der in Auftrag gegebenen Transaktion) durch den Vertreter des ausführenden Instituts zum… …   Deutsch Wikipedia

  • Front Running — Die Praxis des Front Running bezeichnet im Börsenhandel das Ausnutzen des vertraulichen Wissens um die Handelsstrategie des Mandanten (vor der Durchführung der in Auftrag gegebenen Transaktion) durch den Vertreter des ausführenden Instituts zum… …   Deutsch Wikipedia

  • Front running — Le front running est une technique illégale de manipulation boursière qui consiste pour un courtier à utiliser l information de ses clients pour s enrichir. Par exemple, si un client est sur le point de placer un important ordre d achat pour une… …   Wikipédia en Français

  • front-running —    dealing illegally as an insider    You get your order in before that of your client:     The alleged offences include front running in which dealers hurriedly execute orders for themselves, knowing prices will move in their favour by client… …   How not to say what you mean: A dictionary of euphemisms

  • front-running — /frʌnt rʌnɪŋ/ noun US the act of buying shares or options because you have heard of a large order to purchase which is coming ● They were accused of persistent front running …   Dictionary of banking and finance

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