Excessive trading of a client's \ account in order to increase the broker's commissions. The New York Times Financial 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.

HR CHURN(Cf. ↑churn) noun

Financial and business terms. 2012.

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 — 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 — 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 The process of unnecessary purchases and sales in customers accounts for the purpose of… …   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

  • churning — suplakimas statusas T sritis chemija apibrėžtis Indo su medžiaga smarkus purtymas. atitikmenys: angl. agitation; churning; shaking; shakingup rus. взбалтывание …   Chemijos terminų aiškinamasis žodynas

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