churn rate

(1) The percentage of customers who cancel their subscription service. The term often refers to cellphone contracts.

(2) The percentage of employees who leave the company during a certain time period. See churning.

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Churn

The frequency with which a building’s occupants are moved, either internally or externally, including those who move but stay within an organization and those who leave a company and are replaced.

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References in periodicals archive

has made it clear that excessive trading is itself a suitability

objectives, excessive trading, by itself, can violate NASD suitability

Helping law catch up to markets: applying broker-dealer law to subprime mortgages

According to Anderson and Winslow (1992), for an advisor to violate the fiduciary duty owed to a customer insofar as suitability or churning are concerned, specific elements must be present: 1) explicit or implicit control over the account by the advisor; 2) excessive trading; and 3) scienter, meaning reckless disregard for the investor's welfare.

Detecting improper portfolio management activity

Rufenacht, Bromagen & Hertz Inc.,(44) in which the Mississippi Supreme Court held that in a non-discretionary account, the broker does not have a duty to advise or warn customers to discontinue irrational or excessive trading.(45)

1990) (lack of expert testimony on excessive trading defeated plaintiffs' claim).

Liability of stockbrokers: claims for churning and unsuitability

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