In case it wasn't intuitive for you, please know that churning customer accounts is, like, bad. The SEC and FINRA consider it to be a prohibited and fraudulent practice. The practice of buying and selling, buying and selling, puts the customer's account at risk without affecting the broker in any way other than generating excessive commissions. Heads-he wins, tails-he wins, and either way, the customer loses. A broker will end up generating so much in commissions that the account can't possibly make money.
Which, again, is bad.
Here's a link to an SEC notice that will remind us that while churning is bad, churning and ripping off a convent of nuns is probably even worse. Notice how he not only (allegedly) traded too frequently, but also gouged the sisters (allegedly) with high markups/markdowns.
Wow. As a non-Catholic I can't even guess how many hail mary's this guy will need to say each day for the rest of his life . . . ?
http://sec.gov/news/press/2011/2011-2.htm
Which, again, is bad.
Here's a link to an SEC notice that will remind us that while churning is bad, churning and ripping off a convent of nuns is probably even worse. Notice how he not only (allegedly) traded too frequently, but also gouged the sisters (allegedly) with high markups/markdowns.
Wow. As a non-Catholic I can't even guess how many hail mary's this guy will need to say each day for the rest of his life . . . ?
http://sec.gov/news/press/2011/2011-2.htm
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