Dictionary of Finance and Investment Terms: piggybacking
piggybacking
illegal practice by a broker who buys or sells stocks or bonds in his personal account after a customer buys or sells the same security. The broker assumes that the customer is making the trade because of access to material, nonpublic information that will make the stock or bond rise or fall sharply. Trading following customer orders is a conflict of interest, and may be disciplined by the broker's firm or regulatory authorities if discovered.
