boiler room

A stock brokerage firm that targets unsophisticated or otherwise vulnerable people in an attempt to pressure them to purchase stock. The brokers that work for a boiler room use sales tactics designed to exert significant pressure on people to make them buy stock without any regard to whether it is a wise investment for their age, risk tolerance, and investment goals. Brokers who work for boiler rooms may also lie or provide misleading information in order get the sale. Generally, the stocks that boiler room brokers sell are very risky and likely will result in investors losing money. Boiler rooms operate out of inexpensive, obscure locations that can be easily moved or abandoned. They generally operate outside of the law.