Definition of boiler room

place where high-pressure salespeople use banks of telephones to call lists of potential investors (known in the trade as sucker lists) in order to peddle speculative, even fraudulent, securities. They are called boiler rooms because of the high-pressure selling. Boiler room methods, if not illegal, clearly violate the National Association of Securities Dealers' rules of fair practice, particularly those requiring that recommendations be suitable to a customer's account.