Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Churn
ub. CIA. abbr. CENTRAL INTELLIGENCE AGENCY.
churn, burn, and bury
to make numerous risky trades in (an account) and, as a result, squander the customer's money. ( The term denotes the action involved in particularly reckless churning.churning, n. Securities. A stockbroker's excessive trading of a customer's account to earn more commissions rather than to further the customer's interests; an abuse of a customer's confidence for personal gain by frequent and numerous transactions, disproportionate to the size and nature of the customer's account. 9 Under securities laws, the practice is illegal -a violation of § 10(b) of the Exchange Act (15 USCA § 78j(b)). But because the fraud is the activity as a whole and there is no communication between the broker and the customer about a specific sale of securities, there is not normally a right of action for fraud based on churning.
churning
n. Securities. A stockbroker's excessive trading of a customer's account to earn more commissions rather than to further the customer's interests; an abuse of a customer's confidence for personal gain by frequent and numerous transactions, disproportionate to the size and nature of the customer's account. 9 Under securities laws, the practice is illegal -a violation of § 10(b) of the Exchange Act (15 USCA § 78j(b)). But because the fraud is the activity as a whole and there is no communication between the broker and the customer about a specific sale of securities, there is not normally a right of action for fraud based on churning.