Boiler Room (criminal activity)

A boiler room is a term for a high-pressure sales operation where brokers, often operating illegitimately, aggressively persuade investors to buy stocks or securities that are usually overhyped or worthless. These setups typically involve cold-calling potential clients, using deceptive tactics to generate quick profits for the operators while causing significant financial losses for the victims. Essentially, it’s a fraudulent scheme disguised as legitimate investment advice, relying on psychological manipulation and relentless pitching to capitalize on investors’ desire for quick gains.