Boiler room

A boiler room is a high-pressure sales operation, historically telephone-based, that sells securities using scripted misrepresentations. Modern equivalents run through messaging apps and social platforms.

manipulation techniques · updated 2026-09-08

Where does boiler room come up?

This term is used in the following manipulation techniques, each explained in full on its own page.

• Boiler rooms — A boiler room is a high-pressure sales operation that sells securities to investors using scripted misrepresentations, converting a block of stock the operator holds into cash one call at a time.
• Chat group pumps — A chat group pump is a coordinated buying campaign organised inside a messaging group, where organisers accumulate before announcing a target and sell into the buying their announcement produces.

Enforcement actions involving these techniques

See also

• Stock promoter — A stock promoter is someone paid to generate investor interest in a security. The role is legal; concealing the payment, or promot…
• Cold calling — Cold calling is unsolicited contact with prospective investors. It is regulated rather than prohibited, and it is the traditional …

Terms that refer here

Bucket shop · Cold calling

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