Free-Riding Clause Samples
The Free Riding clause is designed to prevent parties from benefiting from the efforts or investments of others without contributing their fair share. In practice, this clause may require each party to make proportional investments, contributions, or efforts in a joint venture or collaborative project, and may restrict access to shared resources or benefits unless such contributions are made. Its core function is to ensure fairness and discourage opportunistic behavior, thereby promoting equitable participation and preventing one party from unfairly exploiting the work or resources of others.
Free-Riding. Free-Riding violates Regulation T of the Federal Reserve Board, and may result in your Account being restricted or closed.
Free-Riding. The practice of purchasing and selling a security in rapid succession without submitting to Pershing payment for the purchase order (the proceeds of the sale are expected to cover the purchase price).