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Churning

   Also found in: Dictionary/thesaurus, Legal, Encyclopedia, Wikipedia, Hutchinson 0.09 sec.
Churning
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 "churn and burn", "twisting" and "overtrading".

2. A period of heavy trading with few sustained price trends and little movement in stock market indexes.

Notes:
Another negative result for the client is being stuck with higher tax bills.


Churning
Excessive trading of a client's account in order to increase the broker's commissions.

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