Over 700 finance terms, Shmooped to perfection.
That feeling in your gut when you're long and the market is going down. But for The Seven, it is an illegal activity that unscrupulous brokers do to garner ill-gotten commissions. Churning is making more trades than are justifiable economically; churners "over trade" a client's account so that they can collect more commission than they should. Registered Advisors have a fiduciary duty to clients to act in the clients' best interest. You'd think that shouldn't have to be made explicitly but sadly it does.