White-collar crime in which a stockbroker makes repeated trades with a client's account in order to fraudulently increase his or her commissions is known as

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03-12-2017
Business

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White-collar crime in which a stockbroker makes repeated trades with a client's account in order to fraudulently increase his or her commissions is known as

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Kalahira Kalahira · Answer 1 · 2017-12-15T21:15:10+01:00

Kalahira Kalahira

15-12-2017

This illegal process is known as churning. By making trades over and over again, the stockbroker is receiving more commissions from all the trades, hurting the client. Churning can be thought of as continually turning over the contents of a portfolio.

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