How can investigators most accurately determine if a broker is churning a client's account?

Select the best answer from the choices provided.
Ask the client if the broker put any pressure to buy a particular stock or mutual fund.
Examine the number of trades made and the suitability of the trades to the client's goals.
Check phone records for any connections between the broker and company insiders.
Verify that the broker did not recommend no-load mutual funds.

Question

How can investigators most accurately determine if a broker is churning a client's account?


Select the best answer from the choices provided.
Ask the client if the broker put any pressure to buy a particular stock or mutual fund.
Examine the number of trades made and the suitability of the trades to the client's goals.
Check phone records for any connections between the broker and company insiders.
Verify that the broker did not recommend no-load mutual funds.

anonymous · Answer

@JoannaBlackwelder

anonymous · Answer

@jim_thompson5910

anonymous · Answer

@JoannaBlackwelder i say A what you think?

joannablackwelder · Answer

I think it is b. http://www.investopedia.com/terms/c/churning.asp

anonymous · Answer

you're right

joannablackwelder · Answer

Examining the number of trades should help in determining if it is an excessive number or not.

anonymous · Answer

its a good thing im going over these

joannablackwelder · Answer

:)

anonymous · Answer

i think the other one relates to breaking point

joannablackwelder · Answer

Breakng point has to do with the amount buying, not which one.

anonymous · Answer

oh