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:

Disparate Impact

A condition in which employment practices are seemingly neutral yet disproportionately exclude a protected group from employment opportunities.

Employer's Intent

The specific goals, plans, or purposes a company aims to achieve concerning its employees and working environment.

Occupational Safety

Policies, procedures, and practices designed to protect workers from workplace hazards and accidents.