Churning


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Churning

Excessive trading of a client's account in order to increase the broker's commissions.

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.

Churning.

If a broker intentionally mishandles buying and selling securities in your investment account, it's known as churning.

The broker might buy and sell securities at an excessive rate, or at a rate that's inconsistent with your investment goals or the amount of money you have invested.

One indication of potential churning is that you're paying more in commissions than you are earning on your investments. Churning is illegal but is often hard to prove.

References in periodicals archive ?
The Borana use smoked gorfa (container woven from asparagus root fibers) or clay for fermentation and churning. The butter is then melted in clay pots using low heat.
Although the number of mobile users is proliferating, there is little empirical evidence to help marketers fully understand what constitutes consumer satisfaction, factors for churning, customer retention and loyalty from a Mobile Network Operator perspective.
It's really easy to make - just add peanut butter to the ice cream mix before churning in the machine.
I realized that in churning, I was taking something from one state--room-temperature milk and cream--and making it a delicacy of life--sweet butter.
Vasuki's neck fans into five serpent heads gripped by Bali, the king of the demons, at the southern end of the wall illustrating the Churning of the Milky Ocean at Angkor Wat.
In addition, Dreyer's reports that, since slow churning works equally well on ice creams with higher fat formulas, it anticipates applying its slow-churned technology to other products in the future.
So what can CEOs do to make sure their low-cost job centers keep churning out products and services for them?
It is estimated that the number of people swapping lenders to ensure they keep getting the lowest rate they can, a process known as mortgage churning, has doubled in the past seven years.
The Council of Mortgage Lenders and management experts PA Consulting found a record number of homeowners are willing to switch mortgages to save cash, known as "churning".
Churning personnel by laying off old-tech workers and simultaneously hiring new-tech workers can have unexpected consequences for a firm that causes it to be worse off.
In fact, churning cost the nation's largest dial-up ISPs at least $10 billion last year alone.
The reason, according phased retirement and annuity specialist the Drawdown Bureau, is that many advisers are steering retirees to full income drawdown plans coupled with 'churning' investment vehicles.