[italkcash]

As well as penny stocks, a so called Boiler Room is a place to conduct broker business of inflating penny stocks or stocks that does not even exist. In most cases the telemarketing people are selling bogus stocks, not even listed at any public index, as well as selling worthless stocks just because they themselves have a stake in the stocks.

The boiler room starts the process off as a bridge loan. When a small company is looking for financing, they look to an investment bank to raise capital. Usually this is a legal procedure but most boiler rooms perform this function for companies that don't exist.

The only way to legally conduct a boiler room would be to have a broker license and use the invested money for high risk investments such as forex trading or financial spread betting. Either way telemarketing works for most people and usually pays of good money to the owners, but most of them seem to fall in the pits.