Churning Happens When a Broker Constantly Buys and Sells Securities

question 79

True/False

Churning happens when a broker constantly buys and sells securities from a client's portfolio in an effort to generate commissions.

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Definitions:

Amygdala

Brain structure located near the hippocampus, responsible for fear responses and memory of fear.

Black Bile

In ancient and medieval physiology, it was one of the four bodily humors, believed to be associated with melancholy.

Ancient Greeks

A civilization belonging to a period of Greek history that lasted from the Dark Ages (around 1200 B.C.) to the end of antiquity (circa 600 A.D.). Known for their advancements in philosophy, science, and the arts.

Abnormal Behaviors

These are patterns of emotion, thought, and action considered pathological (outside societal norms) for one or more of several reasons, including rarity, violation of norms, personal distress, or harmfulness.