An Investment Adviser Representative buys shares of ABC in his own personal account and then contacts his clients and advises th

Question

MissTica

3 years ago

9

An Investment Adviser Representative buys shares of ABC in his own personal account and then contacts his clients and advises th

em to buy ABC. This practice is known as

Business

1 answer:

gizmo_the_mogwai [7] · Answer 1 · 2022-04-30T22:29:03+03:00

Answer:

Front running

Explanation:

In simple words, Front-running can be understood as the broker's selling in stock items or some other ongoing financial commodity that has insider information of a potential sale that is going to greatly impact its value. A broker might be front-running on the basis of insider information that his or her business is about to present customers with a buy or sell suggestion that would almost definitely impact an investment's price.