Question: What is Front Running? A.A broker, after receiving a large order from a client, purchases many shares of that stock for herself first (or tells

What is Front Running?

A.A broker, after receiving a large order from a client, purchases many shares of that stock for herself first (or tells her friends to do so) knowing that this order will cause the price to go up.

B.A broker, after receiving a large order from a client, purchases all of the shares at the same time, causing the price of the stock to fluctuate and creating instabili ty in the price of the stock.

C.A broker uses decimalization, or the fact that stocks are traded in pennies instead of 1/16ths of a dollar, to take advantage of other investors.

D.A broker temporarily invests a clients entire portfolio in a single investment price goes up, and then sells it quickly with the higher price

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