Often, a broker only earns a fee when he buys or sells a security. In this situation, if there is no trading in your account the broker does not receive any income. Most brokerage firms put great pressure on their brokers to make money. Churning describes that situation where a stock broker exercises unnecessary trades in your account for the primary purpose of generating a commission.
Churning is particularly harmful to the customer because their account loses money paid to the broker as a commission. But, in addition the customer loses because they must pay short term capital gains taxes on the profit earned on the sale of the security and cannot benefit from appreciation of the security after it is sold. Often times, these accounts are "turned over" so many times that it is impossible to realize any profit from the transactions and the portfolio may lose great value.
Securities attorney Eric Ludin has many years of experience handling churning cases. He has lectured and had his articles published on the topic of stock broker malfeasance. He serves as an arbitrator for the Financial Industry Regulatory Authority, Inc. (FINRA) and is well suited to analyze and pursue your claim.
