Boiler Rooms
Boiler rooms or boiler houses are stock brokerages that put undue pressure on clients to trade using telesales, usually in pursuit of microcap fraud schemes. Some boiler rooms offer clients transactions fraudulently, such as those with an undisclosed profitable relationship to the brokerage. Some 'boiler rooms' are not licensed but may be 'tied agents' of a brokerage house which itself is licensed or not. Securities sold in boiler rooms include commodities and private placements as well as microcap stocks, non-existent, or distressed stock and stock supplied by an intermediary at an undisclosed markup.
Read more about this topic: Securities Fraud, Types of Securities Fraud
Famous quotes containing the word rooms:
“In frames as large as rooms that face all ways
And block the ends of streets with giant loaves,
Screen graves with custard, cover slums with praise
Of motor-oil and cuts of salmon, shine
Perpetually these sharply-pictured groves
Of how life should be.”
—Philip Larkin (1922–1986)