Can You Explain What A "Boiler Room Scheme" Is?

By admin

I’m unfamiliar with "stock talk".. what exactly is the Boiler Room scheme?

One Response to “Can You Explain What A "Boiler Room Scheme" Is?”

  1. Nightwind

    This usually refers to a Direct Marketing company that resorts to cold calling or direct contract not only from phone, but internet ads, flyers, etc.
    Sometimes is has been shown to be nothing more than scams. They get a sales person to convince you to buy into a product, a venture or on-going "scheme", then use the money to invest or expand operations. Sometimes you find a pyramid scheme under this type of venture, or Ponzi scheme, but there are reputable companies as well.
    You just have to do investigation into the company in question, which can be hard since this is the type of scheme used by start up business’s and they have no real history to investigate.

    #147

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