Tag Archives: Churning
What to Do If You Were a Victim of Excessive Trading (Churning)?
Recently, the SEC Office of Investor Education and Advocacy released an official alert warning investors to be on the lookout for broker excessive trading. Excessive trading, also known as churning, occurs when a broker or broker-dealer make unnecessary transactions on an investor’s account, solely for the purpose of generating increased commissions and fees for… Read More »
FINRA Bans Broker for “Churning” Customer Accounts
A stockbroker has an ethical and legal duty to make “suitable” investments with your money. The Financial Industry Regulatory Authority (FINRA), the self-regulatory organization for brokerage firms in the United States, explains this duty in its Rule 2111. Specifically, the rule says a broker must “have a reasonable basis to believe that a recommended… Read More »
