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Webster's New World Law Dictionary » churning
churning
churning definition - legal
v
In securities law, the
excessive and inappropriate trading of securities in a customerÂ’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 customerÂ’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 Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.
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