Is stock churning illegal?
Stock churning refers to excessive buying and selling in your account by your broker. For stock churning to occur, your broker must exercise control over the investment decisions in your account, either through a formal written discretionary agreement or otherwise, and must engage in excessive trading in light of the financial resources and character of the account for the purpose of generating commissions. The major securities industry has rules prohibiting stock churning.

Do you have lawsuits for stock churning? Contact broker fraud attorneys if your investments were mishandled by a broker.

Excessive stock trading or investment stockbroker churning in order to expand commissions may be grounds for stock churning lawsuits.

In order to determine if an account has been churned a stock churning attorney must review the trading record. The case will only have merit if broker fraud attorney can show that the trading activity was excessive.

Stock churning has occurred if:

• The size of the return does not justify the amount of trading that occurred
• Stocks are sold and bought with seemingly no advantage from the investor’s perspective
• How often the equity in an account is turned over to buy securities. The number of trades made is only one factor. Time is the other critical factor. In some instances two or three trades made over a very short time period may indicate that the broker is stock churning.
• Other Concenrs? We can determine if you have a stock churning lawsuit.