Define: Boiler Room

Business, Legal & Accounting Glossary

Definition: Boiler Room



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Full Definition of Boiler Room


A boiler room is an unflattering term used to describe a place of business where high-pressure telemarketing tactics are used to solicit sales. A boiler room is most often associated with stock brokerage firms. A boiler room may rely on aggressive cold calling to sell risky stocks to willing investors. A boiler room may use sales methods that violate the National Association of Securities Dealers (NASD) rules requiring brokers to recommend investments that are appropriate to an investor’s portfolio. For example, a broker working in a boiler room might try to sell very speculative stock to a retired investor whose portfolio cannot endure such high risk. Boiler room brokers may also try to create investor interest in non-existent companies to profit from the sale of fraudulent shares. The term boiler room is derived from an industrial area that houses steam boilers.


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https://payrollheaven.com/define/boiler-room/
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Boiler Room. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 10, 2020 https://payrollheaven.com/define/boiler-room/.
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Boiler Room. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/boiler-room/ (accessed: April 10, 2020).
American Psychological Association (APA):
Boiler Room. PayrollHeaven.com. Retrieved April 10, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/boiler-room/

Definition Sources


Definitions for Boiler Room are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February, 2020