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LSDefine

Simple English definitions for legal terms

churn, burn, and bury

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A quick definition of churn, burn, and bury:

Churn, Burn, and Bury: When a stockbroker makes too many risky trades in a customer's account, they can lose all of the customer's money. This is called "churn, burn, and bury." It's like playing a dangerous game with someone else's money and not caring about the consequences.

A more thorough explanation:

Definition: Churn, burn, and bury is a term used to describe the actions of a stockbroker who makes numerous risky trades in a customer's account, resulting in the loss of the customer's money.

Example: A stockbroker convinces a customer to invest a large sum of money in a particular stock. The stockbroker then makes several trades in the customer's account, buying and selling the same stock repeatedly, in an attempt to generate commissions for themselves. However, the stock's value drops, and the customer loses a significant amount of money. The stockbroker continues to make risky trades, hoping to recoup the losses, but only ends up losing more of the customer's money. Eventually, the customer's account is depleted, and the stockbroker has "churned, burned, and buried" the account.

This term is used to describe the unethical and illegal actions of some stockbrokers who prioritize their own financial gain over the best interests of their customers. By making numerous risky trades, these stockbrokers generate commissions for themselves, but ultimately cause their customers to lose money. The term "churn, burn, and bury" emphasizes the recklessness and disregard for the customer's well-being that characterizes this behavior.

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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