Which of the Following Is an Example of Churning

question 40

Multiple Choice

Which of the following is an example of churning:

• A) An investor who frequently trades for his account
• B) An advisor who reinvests dividend and interest payments regularly for a client
• C) An advisor who executes frequent trades to take advantage of market movements
• D) An advisor who executes frequent trades to generate income for himself

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Definitions:

Organ

A collection of tissues within a living being that are specialized to carry out a particular task.

Nitrogenous Wastes

Waste products containing nitrogen that result from the metabolism of proteins and nucleic acids, such as urea and ammonia.

Urinary System

The body's drainage system for the removal of urine, comprised of the kidneys, ureters, bladder, and urethra.

Vena Cava

A large vein carrying deoxygenated blood into the heart; divided into the superior and inferior vena cava.