| Churning |
 |
An
unethical practice employed by some brokers to increase their commissions
by excessively trading in a client's account. This practice violates
the "NASD Fair Practice Rules".
In the
context of the stock market, churning refers to a period of heavy
trading with few sustained price trends and little movement in stock
market indices. |
 |
Another
negative result for the client is being stuck with higher tax bills.
|
|
|
|
|
Dictionary
