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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (6067)	8/31/2000 9:59:20 AM
From: sommovigo	Read Replies (2) \| Respond to of 19428

Barb, I was under the impression that front-running is an entity taking a position and then using a position of influence to dispense advice about the issue. For instance, if Abbe Joseph Cohen were to take a position in AMZN and the following day tell the public that AMZN is poised to be the single leader in online retailing and has her admiration... and the stock moved because people value her opinion: then that would be frontrunning. It doesn't matter if the poster is posting anonymously if it can be demonstrated that the anonymous "entity" is influential. For instance, from the real-world of online investing - the famous "Purplegang49" from Yahoo and Raging Bull. No one seems to know his/her real name or if they are registered as a broker or not. Yet it can be shown quite easily that this person yields quite a bit of influence amongst the retail investors that read and act according to the advice this person has dispensed. If this person took a position before recommending a stock, this person could be subject to examination for possibly violating front-running laws as it would be naturally suspected that they used their influence to get investors to profitably move the stock for them. This is the explanation of front-runnning I was given by a broker-friend, and it is one of the main reasons he refuses to post to the internet at all - disclosed or not. He has no reasons to discuss stocks that he has no position in, and thus he says that if he DID post to the internet message boards and someone purchased/sold as a result of his recommendation - he could potentially be charged with front-running.