Boiler Room
What is a Boiler Room?
A boiler room is a call center in which salespeople call potential investors in an attempt to sell risky, or even falsified, investment opportunities using aggressive and unethical tactics.
How Does a Boiler Room Work?
The term came about as a result of the high pressure sales environment it creates. Most salespeople in these environments work solely on commission and many of the investment opportunities are less-than-legitimate.
The salesperson may use fake reports or documents to support claims of profits or legitimacy. During the sales call, aggressive tactics are used to intimidate and entice naïve and non-investment-savvy consumers to partake in an investment scam that may have little, if any, true value. The salespeople try to entice potential investors by promising or hinting at huge returns on their investment.
Why Does a Boiler Room Matter?
If not illegal, the sales tactics that are used in boiler rooms do not conform to government regulations or fair market rules. Boiler room salespeople maximize their income by conveying one-sided, or even false, information in order to persuade as many customers as possible to invest as quickly as possible.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
