Tailgating


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Tailgating

Purchase of a security by a broker after the broker places an order for the same security for a customer. The broker hopes to profit either because of information which the customer has or because the customer's purchase is of sufficient size to affect security prices. This is an unethical practice.

Tailgating

The act of entering a restricted area without authorization by following a person with authorization. For example, one may enter a door immediately behind a person who has the key. The term implies that the tailgater does not have the consent of the person who has access, but this is not always the case. Tailgating is a violation of security protocol and may be a form of trespassing.

tailgating

The placement of an order by a registered representative for the registered representative's own account on the basis of an order that has been received from a client. Suppose a customer calls a registered representative with an order to sell 1,000 shares of stock. If the representative sells the stock for the customer and follows it by selling additional shares of the same stock for his or her own personal account, the representative is tailgating.

Tailgating.

When a broker places your order for a security, and then immediately places an order for his or her own account for the same security, the broker is tailgating.

Although this practice, which is also known as piggybacking, isn't illegal, it is considered unethical, because the assumption is that the broker is trying to profit from information the broker believes you have about the stock.

A broker will typically tailgate only when you buy stock in a sufficient quantity to potentially affect the price of the security.

References in periodicals archive ?
A Highways England survey revealed tailgating is the biggest single bugbear that drivers have about other road users.
Thomas Edelmann, managing director of Road Safety UAE, said: "The majority of UAE motorists recognise the dangers of tailgating, however only 59 per cent never tailgate.
Should a serious collision occur because of tailgating, penalties can result in a driving ban or even a prison sentence.
I discovered the dangers of tailgating at a very early age - in an overly enthusiastic game of musical chairs.
Richard Leonard, head of road safety at Highways England, said: "Tailgating makes the driver in front feel targeted and victimised, distracting their attention from the road ahead and making them more likely to make a mistake.
Pictures highlight the dangers of motorway tailgating
For tailgaters and IU fans Darrell and Shelly Deem, their setup has developed over years of tailgating with family and friends into a truly luxurious spread designed to allow as much fun as possible while limiting the work necessary on the hosts' part to throw the party.
"Sail-gating" makes Washington a tailgating scene like no other, as hundreds of boats carrying thousands of fans across the lake every game day. 
Much of this fall grilling occurs as a result of the beginning of football season, when the national pastime of tailgating takes place.
Though the Traffic Department officials have advised motorists on many occasions to desist from tailgating, the dangerous practice continues unabated on Qatar's roads.
The Golics have formed Golic, LLC, a company that is now seeking a partner to manufacture, market, and distribute its cooler as well as add-on products related to tailgating and other recreational activities.
He said that tailgating caused 26 deaths in 2014 and 11 deaths between January and May in 2015.