If Your Broker, Brokerage Firm, Financial Advisor or Investment Consultant Churned or Excessively Traded Your Account, You May Have A Churning or Overtrading Claim Against Your Broker.
-Report Losses Due To Churning or Excessive Trading-
What Is Churning, Excessive Trading or Overtrading?
Churning, excessive trading or overtrading refers to the excessive buying and selling of securities in your account by your broker, for the purpose of generating commissions and without regard to your investment objectives.
For churning to occur, your broker must exercise control over the investment decisions in your account, either through a formal written discretionary agreement or otherwise. For example, if you relied on your broker’s advice because you were unable to evaluate the broker’s recommendations and exercise your own judgment, your broker may have exercised control over your account.
Did Your Broker Churn Your Account or Make Excessive Trades?
Churning can often be detected by looking at the turnover of securities in an investment account, or the number of times the investment capital or money has been re-invested during a year.
For example, for an actively traded mutual fund, the entire assets of the fund will be involved in buying and selling transactions once every six to twenty-four months. In churning cases, the entire assets of the investor are often traded once a month, or even more frequently. As a commission is paid on each trade, commissions can substantially destroy the value of an investment account in a very short period of time.
If you believe that your broker has churned or excessively traded your account, your broker may be liable to you for a churning claim.
-Recover Losses Due To Churning or Excessive Trading-
If Your Broker, Brokerage Firm, Financial Advisor or Investment Consultant Churned Your Account or Engaged In Excessive Trading, Contact A Churning or Excessive Trading Lawyer.
-Contact A Churning or Excessive Trading Attorney-
If You Were The Victim Of Churning, Share Your Excessive Trading Experiences With Other Investors Below.
