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Churning


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).



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This section covers a wide-ranging array of terms and concepts, among others, in the area of exchanges and financial marekts at large ...
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