Sign In | Sign Up | Help | Invite    
Advanced Search Ask A Question Community Recent Changes
My:             Contributions   
Contributors
{for ul in pageInfo.page}
${ul.nickName}
{var al = toBreakWord(ul.adUrl,18)} {if ul.adSentence !=''}${ul.adSentence}
{/if} {if ul.adUrl !=''}${al}
{/if}
 
{/for}
Earn Free Advertising   +   Earn Money By Writing What You Know at WISTEME.COM
Question Discussion History

Edit
    Question ID:   19541         Current Version: 1
Question: What is churning?
Category: Business & Finance > Investing
Keywords: security trade, churn
Type: what
Rating:(0 ratings)    Views: 13    Discussions: 0   In Watch Lists: 1  

 
    Answer:
Churning refers to the excessive buying and selling of securities in your account by your broker, for the purpose of generating commissions and without regard to your investment objectives. For churning to occur, your broker must exercise control over the investment decisions in your account, either through a formal written discretionary agreement or otherwise. For example, if you relied on your broker's advice because you were unable to evaluate the broker's recommendations and exercise your own judgment, your broker may have exercised control over your account. Churning can be a violation of SEC Rule 15c1-7 and other securities laws.

The major securities industry self-regulatory organizations have rules prohibiting churning and excessive trading. Excessive trading is the same as churning, but without the requirement that the person engaging in the trading does so for the purpose of generating commissions. Churning and excessive trading can violate FINRA Rule 2310, FINRA Rule 2310-2(b)(2), NYSE Rule 408(c), and NYSE Rule 476(a)(6). To request copies of the applicable New York Stock Exchange rules, please call the NYSE at (212)656-2744.

If you believe your broker has churned or excessively traded your account or engaged in another sales practice abuse, please send SEC your complaint using our online complaint form.

Source: SEC
Read more questions from WISTEME through
     Add to MSN Add to My AOL
 Rate this Question
   Add to Groups   Add to Watch Lists   Share Question
                          
 
    More Readings :
[QID:8970]    When does the SEC (Securities and Exchange Commission) suspend a stock from trading?  
[QID:19425]    What is the "net asset value" or "NAV" of an investment company?  
[QID:19320]    What is fund sales charge (load) on purchases?  
[QID:19214]    What are Standard and Poor's Depositary Receipts - Spiders (SPDRs)?  
[QID:19188]    What is the Russell 2000 Index?  
[QID:19176]    What is the S&P 500 Composite Stock Price Index?  
[QID:14189]    How does it determine the dividends in corporation?  
[QID:9007]    What is "Reg A" offering?  
[QID:8977]    Where do microcap stocks trade?  
[QID:8971]    What is a microcap stock?  
     Question ID:  ${question.id}         Current Version:  ${question.version}

{for qh in questionHistory} {if qh.status == 'r'} {else} {/if} {/for}
Version Contributor Date (ET) Voting
${qh.version} ${qh.nickName} ${qh.date} Rejected
${qh.version} ${qh.nickName} ${qh.date} {if qh.status != 'c'} {if qh.status == 'a'} Approved {else} {if qh.rstatus == 'c'} On-going {else} Pending {/if} {/if} {else}   {/if}
Start a New Topic
ID Topics Replies Latest Post (ET)
{if dlist!=null} {for d in dlist} {/for}
${parseInt(d_index)+1} ${d.sentence} ${d.replyNum} ${d.lastestDate}
{else}
No discussion topic.
{/if}
Label Name:
 
Group Name:
 
 
{else}
     You have no group.
{/if}
Advertisements
{if advertisements.length > 0} {else} {/if}
{for ad in advertisements}
${ad.adTitle}
${ad.adSentence}
${ad.adUrl}
{/for}

Home | About Us | Terms of Use | Privacy Policy | Browse Questions | RSS Feed

Copyright ©2010 WISTEME LLC. All Rights Reserved.