Uploaded May 2020 | Updated September 2026, 26 minutes ago
People end up being exposed to phrases which include the term "front-running" (with "tailgating" also being used sometimes) a fair bit, especially if/when they watch programs which involve financial topics, read financial media outlets and so on.
The tricky part is that there are a wide range of activities for which front-running represents a descriptive term, some of them illegal and extremely dangerous and some... well, let's call them legal and benign.
For example, it's perfectly legal to try to beat others to the purchase of say shares if you come across a public statement involving a celebrity claiming that he or she will buy the stocks in question (random example) by taking action quickly... it happens so frequently in financial markets that it actually leads to "buy the rumor, sell the news" behavior. As the name suggests, it revolves around, buying before a certain event takes place officially (buy the rumor) so as to beat other buyers to it and selling once it does (sell the news) so as to win against sellers.
On the other hand, if you perhaps take advantage of a position you have within a certain company and leverage the sensitive private information you have at your disposal so as to front-run... needless to say, as this video explains, we're in illegal territory :)
People end up being exposed to phrases which include the term "front-running" (with "tailgating" also being used sometimes) a fair bit, especially if/when they watch programs which involve financial topics, read financial media outlets and so on.
The tricky part is that there are a wide range of activities for which front-running represents a descriptive term, some of them illegal and extremely dangerous and some... well, let's call them legal and benign.
For example, it's perfectly legal to try to beat others to the purchase of say shares if you come across a public statement involving a celebrity claiming that he or she will buy the stocks in question (random example) by taking action quickly... it happens so frequently in financial markets that it actually leads to "buy the rumor, sell the news" behavior. As the name suggests, it revolves around, buying before a certain event takes place officially (buy the rumor) so as to beat other buyers to it and selling once it does (sell the news) so as to win against sellers.
On the other hand, if you perhaps take advantage of a position you have within a certain company and leverage the sensitive private information you have at your disposal so as to front-run... needless to say, as this video explains, we're in illegal territory :)
