Churning is trading in a customer's account that is excessive
in light of his investment objectives, for purposes of generating
commissions, without regard to the interests of the customer.
In a churning case, the customer must prove: 1) that the broker
controlled the account; 2) that the trading was excessive
in light of investment objectives; and 3) that the broker
intended to defraud the customer or acted willfully or recklessly.
For more information, see Churned
or Traded and Typical
Customer Disputes at the Securities
Law Home Page.