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Finance Dictionary and Glossary of Investment Terms
Unethical practice by a broker of placing an order for the same security that a customer of his/hers just placed, hoping to profit from whatever information the customer might be trading on.
Purchase of a security by a broker after the broker places an order for the same security for a customer. The broker hopes to profit either because of information which the customer has or because the customer's purchase is of sufficient size to affect security prices. This is an unethical practice.
The action of a broker or advisor purchasing or selling a security for his or her client(s) and then immediately making the same transaction in his or her own account.