Boiler Room
Boiler Room is an office in which brokers use large phone book databases to call potential investors and offer them speculative securities, by giving them only positive information about the security.
Main goal is to persuade as many people as possible to buy the security, which can even be fraudulent, buy using persuasive terminology and psychological techniques.
This practice is often considered illegal, and if not, it violates NASD rules of fair practice.
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