Boiler Room Definition Business

A boiler room may rely on aggressive cold calling to sell risky stocks to willing investors.

Boiler room definition business.

In business the term boiler room refers to a busy centre of activity often selling questionable goods by telephone it typically refers to a room where salesmen work using unfair dishonest sales tactics sometimes selling penny stock or committing outright stock fraud the term carries a negative connotation and is often used to imply high pressure sales tactics and sometimes poor working. This refers to an operation or place where high pressure sellers utilize banks of phones for contacting lists of likely investors referred to as sucker lists so as to peddle fraudulent and speculative securities. Outfit where salespeople use hard selling often dishonest techniques to peddle often fraudulent offers to unsuspecting prospects referred to as suckers over the phones. 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.

Boiler room law and legal definition boiler room is a telephone bank operation in which fast talking telemarketers or campaigners attempt to sell stock services goods or candidates and act as if they are calling from an established company or brokerage. A boiler room operation uses high pressure sales tactics to cold call clients and then push them to buy risky intransparent penny stocks. Know how to spot one and beware. A site of illegal operation especially the telephone sales of goods or services by charlatans.

A boiler room is an unflattering term used to describe a place of business where high pressure telemarketing tactics are used to solicit sales. Any room in a building often in the basement that contains a boiler for central. As a result of high pressure selling it is termed a boiler room. A little more on what is boiler.

A boiler room is a place or operation usually a call center where high pressure salespeople call lists of potential investors sucker lists to peddle speculative sometimes fraudulent.