churn

(redirected from churns)
Also found in: Dictionary, Thesaurus, Legal, Idioms, Encyclopedia, Wikipedia.

Churn

To make both buy and sell orders through different brokers, usually in large quantities, to create the impression of increased interest in a security and thereby raise its price. An investor churns if he/she has a long position on the security and wishes to sell it at an artificially high price. Churning is a form of manipulation, and is illegal under the Securities Exchange Act of 1934. See also: Fix.

churn

To trade securities very actively in a brokerage account in order to increase brokerage commissions rather than customer profits. Brokers may be tempted to churn accounts because their income is directly related to the volume of trading undertaken by customers. Churning is illegal and unethical; suspected churning should be reported to the brokerage firm's office manager. Also called burn and churn, overtrade.
References in periodicals archive ?
They do work okay but take a long time to churn down the mix and they don't always freeze the mix down fully before defrosting, so you have to put the mix into the freezer half-churned to finish freezing and it will go hard forming lots of ice crystals and the ice cream/sorbet will not be smooth.
In China's Churn, published by the Federal Reserve Bank of Dallas, economist Meredith Walker describes how privately operated businesses, a return of entrepreneurial spirit and improved living standards for many of its l.
The Yankee Group report, "International Wireless Churn Management Research and Recommendations," provides comprehensive insight into the causes of and cures to combat customer churn in the wireless industry.