churn

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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 ?
4 : to move by or as if by forceful stirring action <Steamboats churned up and down the river.
More treasures appeared until, eventually, a deadly poison also churned up.
Available in grocery stores throughout the country, a package of six Breyers Double Churned Light Ice Cream Bars has a suggested retail price of $3.
Meanwhile, rival Dreyer's Slow Churned Light Ice Cream line of super-premium products now numbers over 25 items, including Cookie 'N Cream, Chocolate Fudge Chunk and Caramel Delight.