excessive trades

USAGE SUMMARY

The phrase "excessive trades" is correct and usable in written English.
It can be used in contexts related to finance, trading, or any situation where an overabundance of transactions is being discussed. Example: "The investor was cautioned against making excessive trades, as it could lead to significant losses."

✓ Grammatically correct

News & Media

Academia

Science

Human-verified examples from authoritative sources

Exact Expressions

3 human-written examples

The Securities and Exchange Commission said today that it had ordered a former PaineWebber Group Inc. broker to pay $300,000 for making unauthorized and excessive trades for customers.

The New York Times

Mr. Eberhard, 39, who appeared on "Moneyline" on CNN and other business news programs, was named in a two-count criminal complaint unsealed in Federal District Court in Manhattan, accusing him of carrying out a scheme to make excessive trades in clients' accounts that caused at least one customer to lose more than $10 million.

The New York Times

Excessive trades or funds.

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

57 human-written examples

The funds are not intended for market timing or excessive trading".

The New York Times

In 2000, Mr. Goldis paid $12,500 to a client to settle a complaint of excessive trading.

The New York Times

Daniel, K and D Hirshleifer (2015), "Overconfident Investors, Predictable Returns, and Excessive Trading," Journal of Economic Perspectives 29 (4), 61-88.

Columbia University

517 (Nov. 8, 2013), Judge Elliot found that respondents engaged in excessive trading in a number of customer accounts.

Harvard University

MFS has stated in its prospectuses that its "funds do not permit market-timing or other excessive trading practices".

The New York Times

The rationale was that because these funds were very large and liquid, excessive trading would not harm shareholders.

The New York Times

Fear of an excessive trade deficit, and of too much debt at both the federal and household levels.

The New York Times

The aim of the FTT is to generate revenue and to reduce systemic risk by dampening excessive trading.

The Economist

Expert writing Tips

Best practice

When discussing potential financial misconduct, use "excessive trades" to denote actions that could be considered unethical or illegal. Be aware that the term often implies a negative judgment.

Common error

Avoid using "excessive trades" when simply referring to high-volume trading. Ensure that the context suggests potential harm, manipulation, or unethical behavior. Otherwise, use "high-frequency trading" or similar neutral terms.

Linguistic Context

The phrase "excessive trades" functions as a noun phrase where the adjective "excessive" modifies the noun "trades". It describes trading activity that surpasses a reasonable or acceptable level. Ludwig AI confirms its usability in written English.

Expression frequency: Rare

Frequent in

News & Media

66%

Academia

17%

Science

17%

Less common in

Formal & Business

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "excessive trades" is a valid and usable term in English, primarily employed to denote a trading volume that is considered too high, often implying potential harm or misconduct. While grammatically straightforward, its impact lies in its contextual implications, frequently surfacing in news, academic discussions, and scientific analyses, according to Ludwig. Alternatives like "overtrading" or "churning" may be more appropriate depending on the specific context. It's crucial to use "excessive trades" judiciously, ensuring that the context warrants the negative connotation it carries.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

overtrading

A single-word alternative that directly implies trading too frequently.

churning

Specifically refers to excessive trading by a broker to generate commissions, often unethical.

high-frequency trading

Focuses on the speed and volume of trades, often algorithm-driven.

excessive speculation

Highlights the risk-taking aspect of too much trading.

unwarranted trading activity

Emphasizes the lack of justification for the trading volume.

immoderate trading

Suggests a lack of restraint in trading practices.

overzealous trading

Implies excessive enthusiasm leading to too much trading.

frenzied trading

Describes a chaotic and uncontrolled trading environment.

aggressive trading

Highlights a forceful and proactive approach to trading.

inordinate trading volume

Focuses on the unusually large quantity of trades.

FAQs

What does "excessive trades" mean in finance?

In finance, "excessive trades" typically refers to a situation where a broker or investor engages in a high volume of transactions, often without clear benefit to the client, potentially to generate commissions or manipulate the market. It's closely related to "churning".

How to identify "excessive trades" in an investment account?

Identifying "excessive trades" involves looking for a high turnover rate in the portfolio, frequent buying and selling of assets, and a lack of clear investment strategy that justifies the trading activity. Comparing the trading activity to benchmarks and consulting with a financial advisor can also help.

What are the legal implications of "excessive trades"?

"Excessive trades", particularly when conducted by a broker without the client's best interest in mind, can be illegal. It may constitute "churning", a form of securities fraud, leading to regulatory penalties and legal action.

Are there synonyms for "excessive trades" that I can use?

Yes, depending on the context, you can use synonyms such as "overtrading", "churning" (if referring to broker misconduct), or "high-frequency trading" (if focusing on the speed and volume of transactions).