churning, n. 1. 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. • Under securities laws, the practice is illegal […]
antichurning rule. Tax. A statutory or regulatory provision that denies certain tax advantages, esp. accelerated depreciation and amortization schedules, to taxpayers who acquire property in a transaction that does not result in a significant change in the property’s ownership or use. See CHURNING(2).
churn, burn, and bury, vb. (Of a stockbroker) 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.
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