Excessive Trading
It is not an uncommon practice for a client to bring his or her money to a broker dealer for investing to grow their wealth. When this happens, how does your broker dealer invest it? Are there precautions in place to prevent your broker dealer’s registered representatives from mismanaging those funds? One type of mismanagement is excessive trading, also known as churning. This happens when a registered representative excessively buys and sells securities in a client’s account for the primary purpose of generating commissions instead of focusing on what is best for the client. While greed is usually the motivating Read more about Excessive Trading[…]