The unnecessary buying and selling of stocks to generate commissions is known as
A)Gouging
B)Churning
C)Emptying
D)Stocking

Question

Quizplus · Accepted Answer

Churning refers to excessive trading by a broker in a client's account to generate commissions for themselves rather than for the benefit of the client. This is unethical and illegal. Gouging refers to excessive charging of prices by a seller, emptying and stocking are not relevant terms in this context.

The Unnecessary Buying and Selling of Stocks to Generate Commissions