Churning is often used as a generic term for buying and selling stocks rapidly. Churning is also a term referring to unconscious or conscious over-trading by an advisory stockbroker in a customer's account. Stockbrokers are paid on a commission on the consideration of a trade. The consideration is the number of shares traded multiplied by the price. As commissions have stabilised the only way brokers can make more money is to trade more shares. There is therefore a natural temptation to trade for the sake of it. It's illegal, but hard to prove.
Churning takes place when a broker initiates trades on an investor's behalf that are excessive in size or frequency in relation to the investor's portfolio and that are against the investor's investment objectives as expressed to the broker. A disreputable broker "churns" for the purpose of generating commissions. Churning is a violation of the federal security laws.
The practice of moving investments merely to attract additional commissions.
A stockbroker advising his client to trade in order to generate commissions for a stockbroker regardless of the benefit to the portfolio is engaging in churning.
Excessive trading of the customerâ€(tm)s account by a broker, who has control over the trading decisions for the account, to make more commissions while disregarding the best interest of the customer. This violates the NASD, CFTC, and NFA rules.
An illegal practice by a broker placing numerous unnecessary transactions in a client's account for the benefit of gaining transaction fees.
Excessive trading in a customer's account by a registered representative who ignores the customer's interests and seeks only to increase commissions; this violates the NASD Rules of Fair Practice.
Excessive trading in a client's account by a broker seeking to maximize commissions regardless of the client's best interests, in violation of NASD rules. also called twisting or overtrading.
Term used to describe the excessive trading of a client's account by a broker in order to increase their commissions.
Is the unethical practice of buying and selling shares simply in order to earn more commission.
A practice, in violation of MSRB and SEC rules, in which a salesperson effects a series of transactions in a customer's account that are excessive in size and/or frequency in relation to the size and investment objectives of the account. A salesperson churning an account is normally seeking to maximize the income (in commissions, sales credits or mark-ups) derived from the account. MSRB Rule G-19 on suitability expressly prohibits churning of accounts.
Excessive buying and selling on a customer's portfolio allowing a broker who controls an account to earn extra commission. This practice can act against the best interests of the customer.
The practice of an investment advisor inducing a client to sell certain securities and to buy others, with the principal aim of being the earning of commission by the advisor.
Churning occurs when sales agents urge a client to cash in an existing insurance policy after a short time and replace it with another. It is a lucrative practice because agents earn commission on each new policy they sell. It is also illegal.
The practice of customers switching from one supplier to another, usually in response to a better offer or discount from the new supplier. In the securities and insurance industries, the illegal practice of a salesperson inducing a customer to buy a new product to generate commissions.
(sometimes also known as excessive trading) An intermediary excessively trades securities of an investor for the purpose of increasing his or her commissions, rather than to further the investor's *investment objective.
The practice where policy values in an existing life insurance policy are utilized to purchase another insurance policy with that same insurer for the purpose of earning additional premiums, fees, commissions, or other compensation without a reasonable basis for believing that the replacement will result in an actual benefit to the policyholder. in a fashion that is fraudulent, deceptive, or otherwise misleading or that involves a deceptive omission.
A broker's act of turning over an investor's account in excessive sizes or frequencies solely for the purpose of generating commissions.
Excessive trading which permits a broker who controls an account to earn excessive commissions while disregarding the best interests of the customer.
Excessive trading by a broker to derive commissions in disregard for the best interests of the customer.
Unethical trading of a customer's account by a broker to create extra commissions. Churning is also when there is high volume with very little movement in price.
Frequent and unnecessary trading by a broker, whose primary purpose is to generate commissions for the broker.
Is an excessive amount of trading of customer funds by a broker. The intent is to generate commission or brokerage fees and not client performance.
The practice of acquiring a holding of shares and then placing both buying and selling order for those shares (usually at about the same price or slightly higher) in order to build up turnover.
Excessive trading in a brokerage account. This can be done to increase the broker's commissions.
Transfer of a telecommunications account from one supplier to another
excessive trading of a customer's account by a broker who has control over the trading decisions for that account for the purpose of generating commissions while disregarding the best interests of the customer.
Excess trading of securities within an account for the purpose of generating commissions and fees for the broker.
This occurs when a broker who controls the customer's account engages in an excessive rate of trading for the customer for the purpose of generating commissions. A broker may control the account where the broker has been given discretion to trade for the customer or where the broker exerts such influence over the customer that he or she in effect controls the customer's trading.
Churning is the practice of excessive trading in a client's securities account for the primary purpose of generating commissions for the practitioner. The practice holds no benefit for the client and is forbidden.
Excessive trading in a customer's account. The term suggests that the registered representative ignores the objective and interests of his client and seeks only to increase his own commissions.
The nefarious practice of buying and selling investments or other financial products unnecessarily on your behalf, simply to earn the stockbroker or financial adviser more commission. Always question your adviser/broker's advice and actions and get a second opinion if you're not convinced that the proposed action is necessary. Churning goes on, but it is often difficult to prove.
when a broker engages in excessive trading of a client's account. This is a forbidden practice in the brokerage industry.
Excessive trading of a client's account in order to increase the broker's commissions.
The practice of customers switching to another supplier based on special discount offers.
an illegal practice in which a broker engages in excessive trades with a client's account in order to generate commissions
Excessive trading which permits the broker to derive a profit in commissions while disregarding the best interests of the customer.
Occurs when sales agents urge a client to engage in a rapid and sustained buying and selling of investments. It is a lucrative practice because agents earn commission on each transaction. It is also often illegal.
A term used to denote a registered representative's improper handling of a customer's account. It implies that he buys and sells securities for a customer intent only upon the amount of commissions generated as a result, while ignoring the customer's suitable interests and objectives.
Refers to excessive trading of a client's account for the purpose of increasing broker commissions, and leaving the client worse off or no better off than before. Churning is illegal under SEC and exchange rules.
To trade securities excessively. In taxable investment accounts, churning invariably leads to reduced returns because of the hefty short-term capital gains tax. But even in tax-deferred 401(k)s or IRAs, trading commissions can eat into your return. In fact, brokers that encourage churning to increase their commissions are committing a securities law violation. A fund manager churning his portfolio will also make you feel the tax bite.
Excessive buying and selling in a customer’s account undertaken to generate commissions for the broker.
Excessive trading in a customer's account. The term suggests that the registered representative ignores the objectives and interests of the client and seeks only to increase commission revenue.
Excessive trading of an account by a broker with control of the account for the purpose of generating commissions while disregarding the interests of the customer.
Excessive trading of a discretionary account by a person with control over the account for the purpose of generating commissions while disregarding the interests of the customer.
Also called excessive trading. A broker excessively trades in an account for the purpose of increasing his or her commissions, rather than to further the customer's investment goals.
A white-collar crime in which a stockbroker makes repeated trades to fraudulently increase his or her commissions.
Excessive trading in an investor's account, usually to benefit the broker in the form of commissions. Churning is illegal.
When a broker processes excessive trades, regardless of the clients best interest, in an attempt to maximize commissions. This practice is illegal as defined by the NASD Rules of Fair Practice.
Extravagant buying and selling in a client's account undertaken to increase the broker’s commission.
Churning is the practice of executing trades for an investment account by a salesman or broker in order to generate commission from the account. It is a breach of securities law in many jurisdictions, and it is generally actionable by the account holder for the return of the commissions paid, and any losses occasioned by the broker's choice of stocks.