Tag: Fraud

Churning
Brokers Compliance Investors

Was the Account Churned?

seclaw.com/glossary/churning/” data-gt-translate-attributes='[{“attribute”:”data-cmtooltip”, “format”:”html”}]’>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 […]