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Churning
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(1) Excessive turnover of an investor's securities holdings, usually implemented or strongly encouraged by a securities salesperson who may face disciplinary action as a result of his activities. (2) Trading more for the sake of generating commissions or trading spreads than for the benefit of the account where the activity takes place. (3) Trading to create the appearance of activity, perhaps as part of an attempt at market manipulation. Also called Chumming.
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