A registered representative excessively trades in a customer's account primarily to generate commissions. This practice is known as:

Why A — Churning

Churning is the excessive buying and selling of securities in a customer's account for the primary purpose of generating commissions for the broker, without regard to the customer's investment objectives. Key factors in determining churning include: the turnover rate, the cost-to-equity ratio, and whether the representative has control over the account. Churning violates FINRA rules and SEC regulations and can result in disciplinary action and customer restitution.