Excessively Trading a Customers Account to Increase a Stockbrokers Commission

question 122

Multiple Choice

Excessively trading a customers account to increase a stockbrokers commission income is

• A) an acceptable method of timing the market to increase rates of return.
• B) called churning which is an illegal practice.
• C) probably unethical but yet is acceptable by the securities industry.
• D) permitted provided that the customer does not object.

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Definitions:

Strive For Superiority

The motivation to overcome perceived weaknesses and assert one's competence or excellence.

Get Along

The ability to relate or interact harmoniously with others, often considered an important aspect of social and emotional intelligence.

Independent

Free from outside control; not depending on another's authority.

Avoiding Style

A conflict resolution approach where individuals deliberately evade addressing an issue or engaging in confrontation.