Tailgating

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unethical practice of a broker who, after a customer has placed an order to buy or sell a certain security, places an order for the same security for his or her own account. The broker hopes to profit either because of information the customer is known or presumed to have or because the customer’s purchase is of sufficient size to put pressure on the security price.

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When a broker or advisor buys or sells a security for a client(s) and then immediately makes the same transaction in his or her own account.

Investopedia Says:
This is not illegal like front running, but it is not looked upon favorably because the broker is mostly likely placing a trade for his or her own account based on what the client knows (like inside information).

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Tailgating is the practice of driving on a road too close to the vehicle in front, at a distance which does not guarantee that stopping to avoid collision is possible. Approximately one third of rear-end collisions involve tailgating.[1]

In many jurisdictions, this action is illegal and punishable by a fine.

Contents

Causes

There can be several reasons for tailgating:

  • Tailgating can occur because of a lack of perceived risk in so doing. Thus, it is done unconsciously or negligently, very often by people who consider themselves safe drivers and generally obey the other rules of the road.
  • In its worst form, it can be a particularly violent form of road rage and a form of intimidation. An example would be where the tailgating driver (the driver in the following vehicle) threatens damage to the leading vehicle and its occupants by driving aggressively — perhaps also with use of headlights and horn — to bully the leading vehicle's driver to get out of the way. The driver being tailgated might not wish to comply, especially if doing so would involve breaking the law, such as by increasing speed beyond the speed limit or changing lanes without due regard for safety. Note, however, that in some jurisdictions flashing high beams is a normal and polite method used to signal the intention to overtake.[2] Tailgating can also be dangerous to the tailgater, especially if he or she is driving closely behind a large vehicle (such as a tractor-trailer, or gas tanker). If the leading vehicle decelerates suddenly (such as when encountering a traffic jam, traffic lights, avoiding pedestrians, etc.), the tailgater has a high risk of causing a rear-end collision.
  • A form of deliberate tailgating known as slipstreaming, "draft-assisted forced stop", or "draft-assisted forced auto stop" (D-FAS) is a technique which has been used by people known as hypermilers to achieve greater fuel economy. D-FAS involves turning off the engine and gliding in neutral while tailgating a larger vehicle, in order to take advantage of the reduced wind resistance in its immediate wake.[2] Note that this practice is extremely dangerous: while tailgating itself is inherently risky, the danger of collision is increased with D-FAS as power for power brakes can be lost after a few applications of the brake pedal and, with older cars, the pressure that causes power steering to function can be lost as well.[3]

In the media

The phenomenon is notably explored in the David Lynch film Lost Highway, in which the character of Mr Eddy severely beats a man who was tailgating him on Mulholland Drive.

References

Notes

External links



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