Churning

{
  "id": "MLC-T-LAW-000972",
  "term": "Churning",
  "field": "Law",
  "definition": "An unethical and illegal practice by a broker who executes excessive trades in a client's account primarily to generate commissions, rather than to achieve the client's investment objectives. This activity violates securities laws and fiduciary duties owed to the client. Evidence of churning often includes a high turnover rate in the account and disproportionate commission costs relative to account value.",
  "url": "https://mlchart.com/terminology/law/churning/"
}