Churning Occurs When a Broker Engages in Excessive Trading in a Client's

question 22

True/False

Churning occurs when a broker engages in excessive trading in a client's security account to generate more commissions for the broker.

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Definitions:

HRM Function

Stands for Human Resource Management Function, encompassing a range of practices like recruiting, training, employee relations, and performance management to effectively manage an organization's workforce.

Downsizing

The process of reducing the number of employees within an organization through terminations, retirements, or divestitures as a means of reducing costs.

Offshoring

The practice of relocating business processes or services to another country, often to reduce costs or access skilled labor not available domestically.

Reengineering

A complete review of the organization's critical work processes to make them more efficient and able to deliver higher quality.