• noun a practice employed by stockbrokers, where they buy and sell on a client’s discretionary account in order to earn their commission. The deals are frequently of no advantage to the client.
  • noun a practice employed by insurance salesmen where the salesman suggests that a client should change his or her insurance policy solely in order to earn the salesman a commission


  • (written as Churning)
    Excessive trading by a broker in a client's account to produce the appearance of meaningful activity, or to increase commissions. Churning is defined as fraud by the Securities and Exchange Commission, as it creates a conflict of interest on the part of the broker, and may result in clients being charged for activities or services that are not to their benefit.

Health Economics

  • (written as Churning)
    Refers variously to such practices as the transfer of patients between l ong-term care hospitals and co-located acute care hospitals simply for financial gain. It is also used as a synonym for staff turnover. The term originates in financial markets (where it is also referred to as 'twisting') - an unethical practice by brokers to increase their commissions by excessively trading on a client's behalf or by convincing policyholders to drop their old coverage and switch to a new insurance policy merely to gain the commission.