Churning (finance)

Under Churning (English " churning ", " ripoff ", comes from to churn " churning ", " Stir " ) is in the financial sector, the frequent rearrangement of a depot understood by an asset manager or broker. Thus the highest possible commissions that are charged to the investor procured. Churning occurs primarily in futures before, and increasingly in the securities field.

The term was inspired by the production of butter, stirred in the milk and the cream is skimmed off until no more milk is available. Similarly, the asset managers layered around the capital and draws from the applicable charges.