Churning Is When a Securities Professional Buys a Stock for His

question 160

True/False

Churning is when a securities professional buys a stock for his own benefit and then urges investors to buy the stock to drive its price up for his benefit.

---

Definitions:

Social Comparison

Social comparison is the process of evaluating oneself against the standards and capabilities of others.

Immoral Tasks

Tasks or actions that are considered to be ethically wrong or not adhering to accepted moral standards.

Drunken Driving

The illegal act of operating a vehicle while impaired by the effects of alcohol, leading to reduced driving skills, slower reaction times, and increased risk of accidents.

Groupthink

A process in which group members are influenced by cohesiveness and a dynamic leader to ignore external realities as they make decisions.