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Finance Glossary

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Turnover Rate


The term that securities regulators sometimes use to describe how often trades are happening in an account, compared to the actual average daily value of the account. For example, if Billy Bob's account has an average balance of $10,000 but total combined trades of $70,000 for the year, then his account is trading at a turnover rate of seven and is most likely the victim of churning in his account.