stepping in front

Front Running

The act of entering a trade, either with a long or short position, knowing that other investors are about to take a position that will positively influence one's own. For example, one may buy Security A knowing full well that other investors are also about to buy Security A in large blocks, causing its price to increase. This will allow the investor to sell Security A at a much higher price. Front running is forbidden by the SEC as a form of insider trading. It is also known as stepping in front or pennying.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

stepping in front

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.