What is CHURNING?

1. In Banking, it is the (1) leaving the total number of accounts the same and generating banking fees while replacing of old accounts by refinancing them. (2) Without increasing the number of accounts or customers, replacing expired accounts with new accounts. (3) Preventing delinquency on delinquent accounts by accepting partial payments . 2. In Securities this is an Illegal broker practice of very high trading of a customer’s account with no regard to the customer’s or customer interest to increase the broker’s commission.

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