Boiler Room Meaning Stock

Know how to spot one and beware.

Boiler room meaning stock.

A boiler room operation uses high pressure sales tactics to cold call clients and then push them to buy risky intransparent penny stocks. A boiler room may rely on aggressive cold calling to sell risky stocks to willing investors. In business the term boiler room refers to an outbound call center selling questionable investments by telephone it usually refers to a room where salespeople work using unfair dishonest sales tactics sometimes selling penny stocks private placements or committing outright stock fraud the use of falsified and bolstered information along with verified company released information is. Any room in a building often in the basement that contains a boiler for central.

A broker using boiler room tactics gives customers only positive information about the stock and discourages them from doing any outside research. A boiler room is most often associated with stock brokerage firms. A boiler room may use sales methods that violate the national association of securities. Younger said i walked in and immediately realized this is my.

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