Excessive buying and selling of securities to generate commissions is called: A

Business Dec 27, 2020

Excessive buying and selling of securities to generate commissions is called:

A. Churning

B. Flipping

C. Marketing

D. Prospecting

E. Scamming

Expert Solution

Excessive buying and selling of securities to generate commissions is called A. Churning.

Churning is when a broker conducts excessive trading in a client account in order to generate commission revenue. This is an unethical and illegal practice in violation of SEC securities laws.

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