Churning
Definition:
Churning is the practice of being involved in transactions with the intent to generate commissions. Churning is common way stock brokers abuse investors in the brokerage industry.
Consequences of Churning:
Brokers often convince investors to make significant invests, so they can buy and sell securities to generate commissions, promising investors they will get quick profits. Churning produces excess commissions for brokers and destroys the financial gains of the investor. However, churning is possible to prove or demonstrate.What a Lawyer can do for you:
A business lawyer can help establish that your broker churned your account by showing excessive trading activity in your account. A business lawyer can represent you by calculating the annual rate of return that covers commissions and how often purchases and sales occur in your account.Lawyer Referral Service:
If you suspect that your broker is churning your investment accounts, contact a business lawyer to learn about your legal options. Attorney Search Network can help you find a business lawyer in your area.
If you have any questions about the information
provided above, please
contact us
Call us or click here to get a referral to an Attorney Search Network panel lawyer or law firm.
Be prepared for your consultation with a business securities lawyer. Use our helpful attorney consultation guide
