_____________ is when a broker constantly buys and sells securities from a client's portfolio in an effort to generate commissions. Rather than making decisions that are in the client's best interest, frequent commission-generating trades may be made by brokers with selfish motives.
A) Blending
B) Flipping
C) Swapping
D) Churning

Question

Quizplus · Accepted Answer

Churning is the practice of excessive buying and selling of securities by a broker in order to generate commissions. This is done with little regard to the client's best interests and is a violation of securities laws. The broker may trade excessively simply to pad their own wallet with commission fees, rather than helping the client to achieve their investment goals.

_____________ Is When a Broker Constantly Buys and Sells Securities