Definitions from the Web
Front-Running
Description:
Front-running refers to the unethical practice of a broker or trader purchasing or selling securities for their own benefit based on advanced knowledge of pending orders from their clients. This practice is considered illegal in many jurisdictions as it takes advantage of non-public information, potentially harming the interests of the clients.
Sample Sentences:
- The stockbroker was accused of front-running his clients by trading securities based on their pending orders before executing their trades.
- The regulatory authorities cracked down on a group of traders involved in systematic front-running, manipulating the market for personal gains.
- Investors should be cautious when selecting a brokerage firm to avoid potential cases of front-running, ensuring their orders are executed fairly and transparently.
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