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:

Dental Coverage

A type of health insurance that specifically covers the costs associated with dental care services.

Life Insurance

A contract between an insurer and a policyholder, providing a death benefit to beneficiaries in exchange for premiums paid by the policyholder.

Positive Reinforcement

An approach to encourage a specific behavior by offering a reward or positive outcome after the behavior is exhibited.

Contingent

Dependent on or conditioned by something else; not absolute or certain.