churning

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. . 2008.


churning
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.
Category: Business, LLCs & Corporations → Business Accounting, Bookkeeping & Finances
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Nolo’s Plain-English Law Dictionary. . 2009.


churning
v. In securities law, the excessive and inappropriate trading of securities in a customer's stock investment account for the purpose of earning the stockbroker more commissions than what would have been earned if the stockbroker was concerned only with the furtherance of his customer's interests. This practice is illegal under the Securities Exchange Act of 1934; however, there is usually no right of action for churning.

Webster's New World Law Dictionary. . 2000.


churning
The practice whereby a broker dealing in securities abuses the confidence of a client for personal gain by unnecessarily trading stocks to earn more commissions.

Dictionary from West's Encyclopedia of American Law. 2005.


churning
The practice whereby a broker dealing in securities abuses the confidence of a client for personal gain by unnecessarily trading stocks to earn more commissions.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

churning
n.
   the unethical and usually illegal practice of excessive buying and selling of shares of stock for a customer by a stockbroker or sales agent for the purpose of obtaining high sales commissions.

Law dictionary. . 2013.

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Look at other dictionaries:

  • 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 — 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

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