Tag: Churning

Churning
Arbitration Featured Articles

Churned or Traded?

seclaw.com/glossary/churning/” data-gt-translate-attributes='[{“attribute”:”data-cmtooltip”, “format”:”html”}]’>Churning claims dominated the securities arbitration landscape in the 2000’s, but have declined over the years, as the trading mania waned. As the markets improved, we have begun to see a resurgence of churning claims again. The common perception among the general public is that a customer who trades his […]

Churning
Brokers Compliance Investors

Was the Account Churned?

Churning is excessive trading in a customer’s account by a broker taken in the context of the customer’s financial situation and investment objectives. While no one test is available to determine if an account has been churned, churning requires three elements, first, excessive trading, and second, control of the account […]