Churning - Excessive trading of a clients account in order to increase the brokers commissions.
1. An unethical practice employed by some brokers to increase their commissions by excessively trading in a client"s account. This practice violates the NASD Fair Practice Rules. It is also referred to as "twisting."
Unjustified overtrading by a stockbroker or fund manager.Private clients have long claimed that brokers "churn" their portfolios, switching in and out of different stocks for no reason other than to generate commission income.
Churning : excessive trading of a clients account in order to increase the brokers commissions.
1. an unethical practice employed by some brokers to increase their commissions by excessively trading in a client"s account. this practice violates the nasd fair practice rules. it is also referred to as "twisting."
unjustified overtrading by a stockbroker or fund manager.private clients have long claimed that brokers "churn" their portfolios, switching in and out of different stocks for no reason other than to generate commission income.
Churning