Late trading of mutual fund shares is an illegal practice occurs when investors placing trades after 4 p.m. receive the 4 p.m. price. These late traders can use the information revealed after 4 p.m. to guide their trades. In fact, there have been several prosecutions leading to large fines and the involved employees losing their jobs.

Front running is the illegal practice of trading with advance knowledge of a block transaction that will influence the price of the underlying security.

Directed brokerage is an informal arrangement between a mutual fund and a broker where the mutual fund will use the broker for its trades if the broker recommends the mutual fund to its clients.