    

|
|
Boiler Room
|
| FYI - For 2011, Dow up, Dogs of the Dow up more (double digits) |
| |
Boiler room is an unflattering term used to describe a place of business where high-pressure telemarketing tactics are used to solicit sales. A boiler room is most often associated with stock brokerage firms. A boiler room may rely on aggressive cold calling to sell risky stocks to willing investors. A boiler room may use sales methods that violate National Association of Securities Dealers (NASD) rules requiring brokers to recommend investments that are appropriate to an investor's portfolio. For example, a broker working in a boiler room might try to sell very speculative stock to a retired investor whose portfolio cannot endure such high risk. Boiler room brokers may also try to create investor interest in non-existent companies to profit from the sale of fraudulent shares. The term boiler room is derived from an industrial area that houses steam boilers.
Rate this boiler room definition...
|
|
Where is the market headed? The answer may surprise you. Find out right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: option premium, deferred revenue, annual return, per diem, inflation, 144a, Zero Cost Collar, current ratio, 1035 exchange, labor relations, retained earnings, 401a, liquidity ratio, irrevocable trust, Key Rate Duration, risk management, debt service coverage, balance sheet, deferred tax, quality assurance, dividends payable, class C shares, ex-dividend date, stock split, ex-dividend, 1031 exchange, command economy, reverse mortgage, stock market close, EBITDA, margin rate, LIBOR, required rate of return, FICO score, VIX, limit order, APR, minority interest, open position, implied volatility, average price per share, phantom income, FTSE, real GDP, diluted share, wholly-owned subsidiary, in escrow, cancelled check, covered put
|
|
| |