Brokers who knowingly or recklessly engage in excessive trading in customers’ accounts are known to be ________.

Brokers who knowingly or recklessly engage in excessive trading in customers’ accounts are known to be ________.
A . over- selling
B . mixing
C . churning
D . none of these answers
E . shingling

View Answer

Answer: C

Explanation:

Brokers and dealers are held to a higher standard of care than the average person. They are liable for knowingly or recklessly engaging in excessive trading in customers’ accounts, (churning); for accepting funds when they are insolvent, for manipulating the market and for fraud under the shingle theory.