churning

Definition

Excessive trading in a client's account by a broker seeking to maximize commissions regardless of the client's best interests, in violation of NASD rules. also called twisting or overtrading.

Use churning in a sentence

You should always try to be churning out as much product as you can when they keep flying off of the shelves.

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The churning strategy of the immoral broker was exposed when the end of the month rolled around and we found out.

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Investors should be aware of brokers churning, simply to make more money for themselves without worry of the client's interests or financial state.

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