Front-running is an unethical practice by stock brokers whereby they execute trades in stocks in their own accounts based upon information they received before executing trades for clients.  There is an inherent conflict of interest when a broker owns the same security as his clients and wishes to take advantage of information before executing trades in his client’s accounts.
Front-running anticipates the influence of upcoming trades on the price of a security. It is illegal for brokers or asset managers to practice front-running using trading information about their own or another broker’s clients and brokers can be fined or even barred by the securities industry for engaging in this activity.
An example of front-running would be when a broker receives bad information about a security and sells his position before executing sell orders in his client accounts.  In this regard, the broker would be obtaining a better price for his sales than he would for his clients.  This is a direct violation of both FINRA and SEC rules.
If you or someone you know has lost money due to Front-running, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.