churn


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Related to churn: churn out, butter churn

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 ?
Those companies with revenue loss directly attributable to churn reported losing an average of 17 percent of their annual subscription revenue or profit.
During the late 1920s, many folks gave up on farming and moved to town in the wake of the Agricultural Depression that persisted through the "Roaring Twenties," and there was a sharp drop in the demand for churns.
Comparing churn rates between operators and countries where habits and culture are different is also tricky.
The churn levels significantly hit BSkyB's total digital-to-home new customer figures, which were the highest for six years in the second quarter at 432,000.
Both gods and demons, she reasoned, had worked equally to churn out the tonic, and so she seated them in separate rows and served the gods first.
Another supplier is adamant that the constant churn is not only detrimental to manufacturers, but that retailers also suffer.
By last year, the churn rate for dailies in all circulation categories had climbed--to an average of nearly 58 percent.
To rural telephone companies, however, churn is a relatively new problem.
After years of painstaking research, I can say with certainty: Churn is bad.
In this report we look at the impact of mobile price on youth loyalty (measured as churn rates).
As so-called digital Estimates churn or remote display to the passengers, the departure times of trains running rail lines for the following rail stops in real time are displayed.