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Webster's New World Finance and Investment Dictionary » boiler room
boiler room
boiler room definition - finance
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.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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