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No, we’re not talking about butter. Churning is a term used in the financial industry to describe when a broker makes more trades than necessary for economic gain, such as increased commissions.
Churning: An illegal activity performed by unscrupulous brokers 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.
What generally happens in churni...
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