burn and churn

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Burn and Churn

To make more trades on a discretionary account in order to inflate commissions, rather than client profits. That is, burning and churning occurs when a broker makes unnecessary trades on an account for his/her own profit, rather than the client's. Burning and churning is illegal.
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burn and churn

See churn.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.