Frontrunning

Business / Taxes / Frontrunning: If you trade stock or other investments because you know that an upcoming transaction by a third party is likely to affect the market price of the investment, you're frontrunning. Because frontrunning, sometimes known as forward trading, relies on information that isn't available to the general public, it's considered unethical in certain circumstances. One example is a broker-dealer who trades at a better price for a personal account than for a client's account.

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