What is exaggeration?

Sometimes it is referred to as Churning , overload is the situation that occurs when trading in investment of some type of unusually fast pace occurs. The deadline may also apply to a company that decides to expand operations or production too quickly. In both scenarios, persistence is usually considered an unwise practice that is likely to cause problems later. The broker who controls the investment portfolio for the investor occasionally performs this aggressive type of business activity. The combination of excess shares will include the purchase and sale of shares at a quick pace at the hope of returning quickly before moving to the next store. Many brokers and exchanges have certain regulations that to some extent reduce the activity of swirling, but practice is still ongoing.

F or society, excessive persistence is usually a phenomenon that takes place when the company enters a period of rapid expansion, but is not in the best position for successful management of this growth. Corporate Curning is associated with several identificationrumor factors. First, the company will probably have a smaller profit range, which in turn affects the amount of capital that has at hand to finance expansion. This single factor itself can expand more gambling and can be the main problem of shareholders' interest in the company.

OverTrading Corporate may also include an expansion of a company that has great competition. The competition level associated with the expansion of production could lead to a situation where there are excessive amounts of finished goods in stocks. The slow movement of the inventory creates an overvaluation situation and do not start to change if the company does not successfully think of strategies to gain more interest of consumers and start minimizing a larger inventory.

In both scenarios can be a swirling of a risky strategy. Quick excess purchase supplemented with aggressive sale has the potential to gain return but can also increase the chances of losing the value of investmentThe portfolio, unless the constant turn is very closely managed. Similarly, the persistence of companies or companies can quickly lead to a situation where the company is unable to fulfill its financial obligations and must look for external financing or consider reduction or even closing.