Canadian Securities Course (CSC) Practice Exam 2026 - Free CSC Practice Questions and Study Guide

Front running in the world of trading refers to the unethical practice of a broker or trader buying or selling securities before executing a larger client order for their own profit. This is done by placing their own orders ahead of the client's, taking advantage of the expected market movement caused by the client's order. This action is considered illegal and is a form of insider trading. Options A, B, and D do not accurately describe front running and are therefore incorrect. Option A refers to prompt execution of client orders, option B refers to buying stocks based on market trends, and option D refers to minimizing risk for clients. None of these options address the unethical aspect of front running and its direct impact on a client's order.