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What does front load in stocks mean?

Updated: 9/14/2023
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13y ago

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Frontload means to buy large quantities of a stock, then pump it so you can dump at much inflated prices. It's illegal to say the least. Best known case is Jonathan Lebed, who as a teenager made hundreds of thousands of dollars by posting in chat rooms and message boards encouraging people to buy penny stocks he already owned, thus artificially raising the price of the stock. The SEC negotiated an out of court settlement and Lebed eventually forfeited $285,000 in profit and interest he had made on 11 trades without admitting any wrongdoing.

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