CHURNER Meaning and
Definition
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Churner refers to a term used to describe an individual or entity that engages in the practice of churning. Churning is a financial tactic commonly associated with the investment field, particularly in relation to brokerage accounts. A churner typically executes a series of frequent and unnecessary transactions within a client's account solely with the intention of generating commission fees or other financial gains for themselves, often at the expense of the client's best interests.
These excessive trades or purchases and sales of securities are often deemed unnecessary as they generally do not align with the client's investment objectives or long-term financial goals. Churners essentially prioritize their own financial benefits over the client's interests, frequently disregarding the negative impact of transaction costs, taxes, and other potential disadvantages associated with excessive trading.
Churners typically exhibit characteristics of unethical behavior and dishonesty. Their actions are often considered fraudulent or manipulative, as they exploit their positions of trust and authority to generate personal profits at the client's expense. Regulatory bodies and financial institutions have implemented strict rules and regulations to prevent and penalize these practices, aiming to protect investors from such predatory behavior.
Overall, a churner can be seen as an unscrupulous individual or entity that engages in excessive trading activities with the primary objective of generating their own financial gains, often to the detriment of the client they are supposed to serve.
Common Misspellings for CHURNER
Similar spelling words for CHURNER
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