churning
An unethical business practice by some stock brokers where excessive trade is made in a client's account in order to generate more commission from the account. Churning prohibited by many securities laws and is judicially actionable.
Definition from Nolo’s Plain-English Law Dictionary
To make a client's account excessively active by the unethical and usually illegal frequent buying and selling of the client's shares of stock, primarily in order to generate commissions.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:12 pm
