excessive trading

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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.

excessive trading

The act of churning.

Mentioned in ?

turnover rate

References in periodicals archive ?

unsuitability for excessive trading, it is clear that plaintiffs have

unsuitability on excessive trading grounds or churning often accompany

It is also clear that significant problems of excessive trading and

Helping law catch up to markets: applying broker-dealer law to subprime mortgages

a former broker, has been charged in a FINRA complaint with excessive trading and churning activity in two customer accounts.

FINRA Orders Westpark Capital to Pay $400,000 for Failing to Supervise Brokers with Histories of Disciplinary Actions, Customer Complaints Who Churned Accounts, Engaged in Unauthorized and Unsuitable Trading

The proposed actions all arise out of alleged market timing and/or excessive trading in the Funds in 2002 and 2003 by an individual whose employment subsequently was terminated by the Bank.

There has been no suggestion that the recipients of the Wells notices profited or sought to profit from the alleged market timing and/or excessive trading of this former employee.

Bank of Hawaii Corporation and the Asset Management Group of Bank of Hawaii Receive SEC Wells Notices; Company Confirms 2005 Earnings Estimate

Sentinel Financial Services Company (SFSC), distributor of Sentinel Funds, has entered into a settlement with the NASD that resolves issues regarding inadequacies in its e-mail retention capabilities, supervisory procedures as they relate to the excessive trading policy of the fund group and alleged short-term trading losses.

NASD and Sentinel Financial Services Company Reach Settlement Regarding e-mail Retention, Supervision of Excessive Trading

these shortcomings, the overall incidence of excessive trading

The Audit and Pricing Committee recommended to the Board of Trustees that it seek restitution for the Funds and their shareholders for the costs they incurred as a consequence of inappropriate employee trading in The Putnam Funds and for Putnam's failure to control excessive trading in a limited number of 401(k) accounts in a timely manner.

The report also identifies deficiencies in the monitoring and deterrence of excessive short-term trading in 401(k) plans, though the incidence of excessive trading in these plans overall was very low.

Independent Trustees of the Putnam Funds Issue Report on Late Trading and Market Timing

potential excessive trading by significantly increasing

MFS Investment Management Sets New Standards For the Mutual Fund Industry

2 million of client funds, and for excessive trading, or

Department of Corporations Identifies Top 10 California Investment Schemes and Scandals for 2004