Business, Legal & Accounting Glossary
n. an unofficial and usually illegal betting operation in which the prices of stocks and commodities are posted and the customers bet on the rise and fall of prices without actually buying stock, commodities, or commodity futures. Bucket shops are seldom seen today since there are many opportunities to gamble legally on the stock and commodities markets.
You may think a bucket shop is simply somewhere you buy cheap airline tickets. It’s originally an American expression for a gambling den and in stockmarket terms, that’s something much less palatable.
A bucket shop is also sometimes called a boiler room, ie. a share-broking business run by somebody who isn’t a member of the stock exchange and is likely to be an out-and-out criminal.
It exists to push worthless or even non-existent shares to unsuspecting mug punters (the public). These companies will invariably fail, or fail to fulfil their claimed potential. The Internet is a fertile ground for such conmen (and con women)
Avoid at all costs!
boiler room
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This glossary post was last updated: 26th April, 2020 | 0 Views.