(redirected from piggybacked)
Also found in: Dictionary, Thesaurus, Medical, Idioms, Encyclopedia.


The practice in which a broker conducts a transaction on his/her own account after filling a similar order on behalf of a client. For example, if a client sells 10,000 shares and the broker owns some shares in the same company, he may piggyback by selling his own shares. A broker piggybacks when he/she believes that the client has insider information, or at least a better understanding than the broker on the market's future movements. Piggybacking should not be confused with piggy back registration, which is a different concept altogether.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


1. A broker trading in his or her personal account after trading in the same security for a customer. The broker may believe the customer has access to privileged information that will cause the transaction to be profitable.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


A broker who piggybacks acts illegally by buying or selling a security for his or her own account after -- and presumably because -- a client has authorized that same transaction.

One speculation is that a broker in this situation thinks the client is acting on information that the broker doesn't have.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
"Magnum has a program that calculates what the optimum motor speed needs to be for a particular operation, and what size is needed." The variable-speed drive controls are piggybacked on the existing machine-control system, and operate automatically when the machine is in use.
Young chaired a NASA-appointed panel that investigated the Mars program after the loss last year of the $125 million Mars Climate Orbiter, the $165 million Mars Polar Lander, and a $29.6 million pair of microprobes that had piggybacked on the lander.
4 signal proves real and engineers can eventually recontact the craft, scientists could learn how it has fared--for example, whether it properly deployed its parachute and if two experimental probes that piggybacked on the lander separated from it as planned.
Schoenberg's team piggybacked its radon survey to a study of other cancer risk factors in women, such as diet and smoking history.