Business and Personal Finance Dictionary

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• BOILER ROOM
  
  A boiler room is a stock brokerage firm that uses aggressive tactics to sell risky, and sometimes falsified, stocks to willing investors. Boiler rooms often use sales methods that violate NASD rules requiring brokers to recommend investments that appropriate to each investors portfolio. For example, a broker working in a boiler room might try to sell very speculative stock to retired investors whose portfolios cannot tolerate such high risk. Many boiler room brokers may also try to create investor interest in companies that dont actually exist in order to profit from the sale of fraudulent shares.
  
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