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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.


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.


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.


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 ?
Thomas Edelmann, managing director of RoadSafetyUAE, said: "The majority of UAE motorists recognise the dangers of tailgating, however only 59 per cent never tailgate.
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.
Tailgating caused 26 deaths in 2014 in Dubai, and 11 deaths between January and May this year.
The name Mike Golic is synonymous with football games and with the tailgating experience in general," said Cantor.
Over the last couple of years, tailgating has been the number three killer on UAE roads and educating drivers about its dangers is very important.
based Sealed Air/Cryovac, which supplies packaging materials for a variety of meat and poultry products, underscores the one-upmanship of tailgating.
Tailgating impacts building management practices as well.
The American Tailgating Association - and please don't scoff at the idea of an American Tailgating Association, because really, who else is going to give the tailgater a voice at the national level?
On average, there were 208 instances of tailgating daily in March on the M50 - but that has dropped to just 74 since rear-facing cameras were installed.
Insurance managers have also urged the police to recommend laws not to pay for damages caused by accidents due to tailgating, if proved.
2001) is limited because it focuses more on the act of tailgating as a leisure activity and less on the enduring and meaningful importance of the ritual.