What is finance?

While most people consider furnishings to be an activity that takes place either on the highway or in sports stadium parking lots, this term can also apply to the specific type of activity that takes place with investments. Since it concerns finance, it refers to the practice of making a purchase or selling security on behalf of the client and then performing the same event involving the same action as their own name. While capturing this type is generally associated with brokers, the fact is that anyone who acts as an investment agent for a client can engage in this type of activity.

Tailgating must not be confused with the illegal practice of trading people. With tailgating they are watching a broker or client management brokers. There is no illegal approach to ownership information associated with tailgting. On the other hand, trading of initiates involves obtaining information that is not considered a public domain and attempts to benefit this information before becoming public knowOsví. In many countries, the training of initiated and similar strategy known as the leading run is considered illegal and is subject to severe fines and in many cases criminal accusations.

While tailgating is not considered illegal, many brokers and other financial experts consider this practice unethical. The brokers are expected to be reasonably expected to invest on the basis of their own research and evaluate current market conditions, which could be considered suspicious of any type of investment transaction based on the order issued by the client. For this reason, many brokers have decided to refrain from replication of customers' orders with their own investment accounts, if the order was based on the recommendations provided to the client in the first place.

The general rule of capture is that the client's management and investment without examining the appropriateFactors can bear a certain degree of risk that, unlike the decision, is not an investment based on the instinct itself. In short, most brokers will consider it more reasonable to examine the investment strategy in person and to lead to their own opinion, rather than simply watch the client's management.