| Front
Running |
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An
unethical practice by market makers, they trade an equity in advance
to information by their analysis department and before their clients
have been given the information.
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One
example of front running are analysts and brokers that buy up shares
in company XYZ just before the brokerage is about to recommended the
stock as a strong buy.
Another example is a broker who buy's himself 200 shares in stock
XYZ just before his brokerage was planning to buy a large block of
400,000 shares. |
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Dictionary
