Churning occurs when a broker, exercising control over the volume and frequency of trades, abuses his customer's confidence for personal gain by initiating transactions that are excessive in view of the character of account and the customer's objectives as expressed to the broker. As a scheme, the essence of which is deception of a relying customer, churning, as a matter of law, is considered a violation of federal securities law proscribing fraud in connection with the purchase and sale of securities. Securities Exchange Act of 1934, No. 10(b), 15 U.S.C.A. No. 78j(b). Costello v. Oppenheimer & Co., Inc., C.A.I11., 711 F.2d 1361, 1366

Black's law dictionary. . 1990.

Look at other dictionaries:

  • churning — n. Excessive and unnecessary trades of stock by a broker in order to increase his or her commission. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008. churning …   Law dictionary

  • Churning — Churn ing, n. 1. The act of one who churns. [1913 Webster] 2. The quantity of butter made at one operation. [1913 Webster] …   The Collaborative International Dictionary of English

  • Churning — Excessive trading of a client s account in order to increase the broker s commissions. The New York Times Financial Glossary * * * churning churn‧ing [ˈtʆɜːnɪŋ ǁ ɜːr ] noun [uncountable] informal FINANCE when a stockbroker buys and sells… …   Financial and business terms

  • churning — When a broker engages in excessive trading to derive a profit from commissions while ignoring his client s best interests. The CENTER ONLINE Futures Glossary The process of unnecessary purchases and sales in customers accounts for the purpose of… …   Financial and business terms

  • churning — / tʃɜ:nɪŋ/ noun 1. a practice employed by stockbrokers, where they buy and sell on a client’s discretionary account in order to earn their commission (the deals are frequently of no advantage to the client) 2. a practice employed by insurance… …   Dictionary of banking and finance

  • Churning — Unter Churning (engl. „Provisionsschneiderei“, „Gaunerei“; kommt von to churn „Buttern“, „Umrühren“) wird im Finanzbereich das häufige Umschichten eines Depots durch einen Vermögensverwalter oder Broker verstanden. Dadurch verschafft sich dieser… …   Deutsch Wikipedia

  • churning — [[t]tʃɜ͟ː(r)nɪŋ[/t]] ADJ: ADJ n Churning water is moving about violently. [LITERARY] ...anything to take our minds off that gap and the brown, churning water below. Syn: swirling …   English dictionary

  • Churning — Churn Churn, v. t. [imp. & p. p. {Churned} (ch[^u]rnd); p. pr. & vb. n. {Churning}.] [OE. chernen, AS. cernan; akin to LG. karnen, G. kernen, D. karnen, Dan. kierne, Sw. k[ a]rna, and also to E. corn, kernel, the meaning coming from the idea of… …   The Collaborative International Dictionary of English

  • churning — 1) The practice by a broker of encouraging an investor to change investments frequently in order to earn excessive commissions. 2) The practice by a bank, building society, insurance broker, etc. , of encouraging a householder with an endowment… …   Big dictionary of business and management

  • churning — suplakimas statusas T sritis chemija apibrėžtis Indo su medžiaga smarkus purtymas. atitikmenys: angl. agitation; churning; shaking; shakingup rus. взбалтывание …   Chemijos terminų aiškinamasis žodynas

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