Meaning & use
boiler room trading
Last updated
Meaning
noununcountablefinancedisapproving
The illegal practice of selling worthless investments by phone from a temporary office, using high-pressure tactics.
Grammar: Uncountable; used with a singular verb: 'Boiler room trading is illegal.'
Patterns
- engage in boiler room trading
- be accused of boiler room trading
- boiler room trading operation
The authorities shut down a boiler room trading operation last month.
He lost his savings to boiler room trading.
Boiler room trading often targets inexperienced investors.
Common combinations
- boiler room trading scheme
- They were arrested for running a boiler room trading scheme.
- boiler room trading operation
- The boiler room trading operation moved offices every few months.
- engage in boiler room trading
- The company was found to have engaged in boiler room trading.
- boiler room trading scam
- Many retirees fell victim to a boiler room trading scam.
Synonyms and how they differ
- microcap fraud
- A broader term for fraud involving small company stocks; boiler room trading is one method.
- pump and dump
- A specific scheme where prices are artificially inflated then sold; boiler room trading often uses this tactic.
Word family
- boiler room noun
- The temporary office used for such fraudulent sales.
Commonly confused: boiler room trading or day trading?
boiler room trading vs day trading
Day trading is legal buying and selling within one day; boiler room trading is fraudulent.
Practice
Investors were warned about ______ boiler room trading.
Choose one answer.
'Boiler room trading' is uncountable, so no article is used. 'A' or 'an' would suggest a countable unit, and 'the' would refer to a specific instance already mentioned.
Make it your own
Write a sentence using “boiler room trading”, then check it and compare it with the examples above.