FRONT-RUNNING

front-running,n. Securities. A broker’s or analyst’s use of nonpublic information to acquire

securities or enter into options or futures contracts for his or her own benefit, knowing that when

the information becomes public, the price of the securities will change in a predictable manner. •

This practice is illegal. Front-running can occur in many ways. For example, a broker or analyst

who works for a brokerage firm may buy shares in a company that the firm is about to recommend

as a strong buy or in which the firm is planning to buy a large block of shares. See INSIDER

TRADING.[Blacks Law 8th]