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Churning |
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Churning Churning. If a broker intentionally mishandles buying and selling securities in your investment account, it's known as churning. The broker might buy and sell securities at an excessive rate, or at a rate that's inconsistent with your investment goals or the amount of money you have invested. One indication of potential churning is that you're paying more in commissions than you are earning on your investments. Churning is illegal but is often hard to prove. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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