A boiler room is a place or operation - usually a call center - where high-pressure salespeople call lists of potential investors "sucker lists" to peddle speculative, sometimes fraudulent, securities. Sucker lists identify victims of previous scams. The term boiler room refers to an early practice of running such operations in the basement or boiler room of a building and is so called due to high-pressure selling. A broker using boiler-room tactics gives customers only positive information about the stock and discourages them from doing any outside research. Boiler room salespeople typically use catchphrases like "it's a sure thing" or "opportunities like this happen once in a lifetime. According to the Securities and Exchange Commission SEC , the people involved in a boiler room scheme reach out to investors through cold calls, unsolicited calls to people with whom the salesperson has had no prior contact. While this means the prospect has no reason to trust the caller, it also means that they have no background information to disprove their claims. The SEC advises investors to research the backgrounds of investment salespeople and provides their website Investor. Part of the pressure sales approach may include making assertions about the investment opportunity that the target cannot verify on their own.
The film was conceived when screenwriter Ben Younger interviewed for a job at brokerage firm Sterling Foster. Younger said, "I walked in and immediately realized, 'This is my movie. In , Seth Davis Ribisi , a year-old Queens College dropout, runs an unlicensed casino in his home near the campus, catering to college students. Although he earns a successful living, he is a disappointment to his father, Marty Rifkin , a New York City federal judge. One night, his cousin Adam Kennedy stops by the casino to play blackjack, bringing a rich associate named Greg Weinstein Katt along with him. Greg recruits Seth to join J. Marlin, a brokerage firm based somewhere off the Long Island Expressway , promising him that he has the opportunity to get rich. Arriving at J. Marlin, Seth attends a group interview and learns from Jim Young Affleck , one of the co-founders of the firm, what is expected of his work and also how he can become a millionaire.
Boiler rooms are often set up in inexpensive office spaces, where armies of telemarketers make these cold calls. While the stock they sell may be real most likely an unknown micro-cap stock , the information these salespeople use to hype their product could be false or misleading because of their overwhelming desire to sell the stock and claim a commission. They'll often tout stocks that trade on the Pink Sheets or the over-the-counter bulletin board , as both of those exchanges require little in terms of disclosure or regulation. Besides the fact that these operations are based on deception and coercion, many of these salespeople and brokers are not even qualified to work in the securities industry. If you become a victim of a boiler room operation, it can be tough to get out. This is assuming that your calls to your broker are actually returned.
Check out our breakdown of the movies and shows we're excited about this month, including " Lovecraft Country. See our picks list. A young and impatient stockbroker is willing to do anything to get to the top, including trading on illegal inside information taken through a ruthless and greedy corporate raider who takes the youth under his wing. Follows the key people at an investment bank, over a hour period, during the early stages of the financial crisis. The wannabe sons of mobsters go to a remote town in the Midwest, and get themselves into more trouble than anyone could anticipate. The story of Nick Leeson Ewan McGregor , an ambitious investment broker who singlehandedly bankrupted one of the oldest and most important banks in Britain.