Churning Stocks

Churning of Accounts

Churning occurs when a broker engages in excessive buying and selling of securities in a customer’s account chiefly to generate commissions that benefit the broker. For churning to occur, the broker must exercise control over the investment decisions in the customer’s account, such as through a formal written discretionary agreement. Frequent in-and-out purchases and sales of securities that don’t appear necessary to fulfill the customer’s investment goals may be evidence of churning.

Godbout Law’s attorneys handle securities litigation and arbitration matters throughout Massachusetts, for individuals, creditors and small businesses.

Contact us for a consultation.

Contact Godbout Law

Tags: churning stocks boston, churn investments

Pin It on Pinterest

Share This