Which is an example of a "front runner":
A) A bucket shop
B) A clerk who overhears good news about a company and trades on the information
C) A clerk who becomes aware of a large pending trade and trades on the information
D) All of the above

Question

Which is an example of a "front runner": 
A) A bucket shop
B) A clerk who overhears good news about a company and trades on the information
C) A clerk who becomes aware of a large pending trade and trades on the information
D) All of the above

Quizplus · Accepted Answer

Front running refers to the unethical practice of a broker or other market participant trading on the basis of advance, non-public knowledge of a large pending transaction that will influence the price of a security. Choice C accurately describes this scenario, where a clerk trades based on knowledge of a large pending trade.

Which Is an Example of a "Front Runner