churning

churning
When a broker engages in excessive trading to derive a profit from commissions while ignoring his client's best interests. The CENTER ONLINE Futures Glossary
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The process of unnecessary purchases and sales in customers' accounts for the purpose of generating commissions. American Banker Glossary
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Excessive trading of a client's account in order to increase the broker's commissions. Bloomberg Financial Dictionary
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The act of engaging in excessive trading to generate commission whilst disregarding the best interests of customers. Expressly prohibited for all discretionary customers and advisory private customers. Dresdner Kleinwort Wasserstein financial glossary
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Term used to describe the excessive trading of a client's account by a broker in order to increase their commissions. Financial Services Glossary
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Is the unethical practice of buying and selling shares simply in order to earn more commission. London Stock Exchange Glossary

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churning churn‧ing [ˈtʆɜːnɪŋ ǁ -ɜːr-] noun [uncountable] informal
FINANCE when a stockbroker buys and sells different investments for their clients more often than they should, in order to increase the amount of commission they earn:

• He will consider increasing taxes on short-term trades as a way to discourage churning of stocks.

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   Excessive buying and selling on a customer's portfolio, allowing the broker who controls an account to earn extra commission. For a market as a whole it can refer to a period of heavy turnover with no clear market trend.
   ► See also Broker.

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churning UK US /ˈtʃɜːnɪŋ/ noun [U]
► (also churn) STOCK MARKET the illegal practice by stockbrokers of buying and selling a client's investments more often than necessary, in order to make more money in commissions: »

Our attorneys specialize in representing victims of stockbroker fraud, securities churning, and unauthorized trades.

► COMMERCE, MARKETING CHURN(Cf. ↑churn) noun
► HR CHURN(Cf. ↑churn) noun

Financial and business terms. 2012.

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Look at other dictionaries:

  • churning — n. Excessive and unnecessary trades of stock by a broker in order to increase his or her commission. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008. churning …   Law dictionary

  • churning — occurs when a broker, exercising control over the volume and frequency of trades, abuses his customer s confidence for personal gain by initiating transactions that are excessive in view of the character of account and the customer s objectives… …   Black's law dictionary

  • churning — occurs when a broker, exercising control over the volume and frequency of trades, abuses his customer s confidence for personal gain by initiating transactions that are excessive in view of the character of account and the customer s objectives… …   Black's law dictionary

  • Churning — Churn ing, n. 1. The act of one who churns. [1913 Webster] 2. The quantity of butter made at one operation. [1913 Webster] …   The Collaborative International Dictionary of English

  • Churning — Excessive trading of a client s account in order to increase the broker s commissions. The New York Times Financial Glossary * * * churning churn‧ing [ˈtʆɜːnɪŋ ǁ ɜːr ] noun [uncountable] informal FINANCE when a stockbroker buys and sells… …   Financial and business terms

  • churning — / tʃɜ:nɪŋ/ noun 1. a practice employed by stockbrokers, where they buy and sell on a client’s discretionary account in order to earn their commission (the deals are frequently of no advantage to the client) 2. a practice employed by insurance… …   Dictionary of banking and finance

  • Churning — Unter Churning (engl. „Provisionsschneiderei“, „Gaunerei“; kommt von to churn „Buttern“, „Umrühren“) wird im Finanzbereich das häufige Umschichten eines Depots durch einen Vermögensverwalter oder Broker verstanden. Dadurch verschafft sich dieser… …   Deutsch Wikipedia

  • churning — [[t]tʃɜ͟ː(r)nɪŋ[/t]] ADJ: ADJ n Churning water is moving about violently. [LITERARY] ...anything to take our minds off that gap and the brown, churning water below. Syn: swirling …   English dictionary

  • Churning — Churn Churn, v. t. [imp. & p. p. {Churned} (ch[^u]rnd); p. pr. & vb. n. {Churning}.] [OE. chernen, AS. cernan; akin to LG. karnen, G. kernen, D. karnen, Dan. kierne, Sw. k[ a]rna, and also to E. corn, kernel, the meaning coming from the idea of… …   The Collaborative International Dictionary of English

  • churning — 1) The practice by a broker of encouraging an investor to change investments frequently in order to earn excessive commissions. 2) The practice by a bank, building society, insurance broker, etc. , of encouraging a householder with an endowment… …   Big dictionary of business and management

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