Boiler Room Trading

Boiler room trading refers to a high-pressure sales environment where brokers aggressively sell investments, often in dubious or fraudulent schemes, to unwitting investors. These operations typically use telemarketing tactics, creating a sense of urgency to persuade potential clients to invest quickly. While the brokers may promise high returns, the reality is that many of these investments are poor or nonexistent. Boiler room activities are illegal and are designed to defraud individuals, leading to significant financial losses. Regulators often seek to shut down such operations to protect consumers from scams and ensure market integrity.