A manipulative trading tactic (a type of volume manipulation) whereby a stock (or generally a security) is excessively traded to inflate its trading volume so that market participants would mistakenly think there is a positive investor sentiment for the stock. Churning involves client accounts/ house accounts from which brokers and/ or traders generate commission fees.
A churned account is typically associated with commission payments higher than earnings on investments (that is, a high churn rate).
