How does front-running stocks work? Why is the practice of front-running prohibited in the financial market? If you’re front-running stocks, you’re technically manipulating the market into giving you private or insider information. In Flash Boys, Michael Lewis goes into depth on the concept to educate readers on why it’s a dishonorable way of trading stocks. Here’s Lewis’s easy-to-understand breakdown of front-running stocks, including three versions of the practice that high-frequency (HF) firms and investors use.
Front-Running Stocks: How Does It Work?
