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Churning 1. An unethical practice employed by some brokers to increase their commissions by excessively trading in a client's account. This practice violates the NASD Fair Practice Rules. It is also referred to as "churn and burn", "twisting" and "overtrading". 2. A period of heavy trading with few sustained price trends and little movement in stock market indexes. Another negative result for the client is being stuck with higher tax bills.
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