Akademik

n.

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.)

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

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