boiler room

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.