The excessive buying and selling of shares by a stockbroker for a client's account as a method of generating income from the resulting commissions. (Churn + turnover.)
Example Citation:
Since stockbrokers lived on commissions generated by deals, it was essential that they maintain a certain turnover. This, once again, is where the dear old private client came in useful. The cynical term "churnover" was coined by stockbrokers to describe a simple act of survival. When markets go horribly quiet, as they do from time to time, there is a very real risk that securities traders may face the possibility of a diminished income due to the thin trade in shares.
— David Bullard, "Why this new exchange must list a load of rubbish," Sunday Times, November 2, 2003
Earliest Citation:
What does an investor get for a lot of furious trading? Sometimes, good performance. Sometimes, bad performance. Always, trading costs.
— David Henry, "High churnover," Forbes, March 10, 1986
Related Words: Category:

New words. 2013.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • churnover — n. (Stock Market) immoderate purchase or sale of shares carried out by stockbroker on behalf of a client in order to produce income from the commissions as a result thereof …   English contemporary dictionary

  • Stock Market and Investing — angel investor bear tack black swan Bull Market Babies capitulation bottom carve out casino culture …   New words

  • day trading — n. Internet based stock market trading in which individual investors quickly buy and sell equities to take advantage of short term trends, and then sell most if not all of their holdings before the end of the day. day trading adj. day trade v.… …   New words

  • pump and dump — v. When a stockbroker, analyst, or shareholder encourages investors to buy a particular stock in an effort to raise its share price, and then to sell what he owns of the stock at the higher price. Example Citation: Some of the promoters charged… …   New words

  • statement shock — n. • The shock a person experiences when they see a large balance on their credit card statement, particularly in January. • The shock a person experiences when they see a large drop in the value of their investment portfolio. Example Citation: • …   New words

  • ticker shock — n. The anguish experienced by an investor who owns equities and who sees the value of their portfolio diminish when the stock market goes down (cf. sticker shock). Example Citation: Maybe it was cool headed professionalism or perhaps it was some… …   New words

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”