What is Churning definition and meaning of Churnin
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Posted On: 03/18/2013 3:13:34 AM
What is Churning definition and meaning of Churning
Excessive trading by a broker in a client's account largely to generate commissions. Churning is an illegal and unethical practice that violates SEC rules and securities laws. While there is no quantitative measure for churning, frequent buying and selling of securities that does little to meet the client's investment objectives may be construed as evidence of churning. Churning may often result in substantial losses in the client's account, and even if profitable, may generate a tax liability for the client.
Read more: http://www.investopedia.com/terms/c/churning....z2NsBIWiXP
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