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Twisting

   Also found in: Dictionary/thesaurus, Medical, Legal, Idioms, Encyclopedia, Wikipedia, Hutchinson 0.04 sec.
Twisting
Convincing a customer that trades are necessary in order to generate a commission. This is an unethical practice.
twisting
An attempt to convince an individual to sell one product and purchase another product, primarily so the salesperson can earn additional commissions. In the brokerage business, twisting is usually called churning. Twisting, the more general term, applies to the sale of other products as well, such as insurance policies.
Twisting
The act or practice of a broker making unnecessary or harmful trades on a client's discretionary account with the intent of maximizing his/her commission. This violates rules of FINRA and most individual exchanges, and may violate federal law in some circumstances. The practice is also known as overtrading or churning. See also: Suitability rules, Prudent-person rule.


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